DAVID DICKSON LTD

Executive Summary

DAVID DICKSON LTD exhibits an excellent financial health profile characterized by strong cash reserves and no liabilities, consistent with its dormant status. The company is financially sound and well-prepared to begin trading activities. Moving forward, focus should be on activating business operations and maintaining robust financial controls to ensure sustained financial wellness.

DAVID DICKSON LTD - Analysis Report

Company Number: NI696394

Analysis Date: 2025-07-29 13:55 UTC

Financial Health Assessment for DAVID DICKSON LTD

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1. Financial Health Score: A

Explanation:
DAVID DICKSON LTD demonstrates an exceptionally strong financial position for a newly incorporated company, with a clean balance sheet and substantial cash reserves. The company is dormant, indicating no business operations or liabilities, resulting in a pristine financial state. This is akin to a patient showing perfect vital signs—no symptoms of distress or underlying illness.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active, Dormant	Operating legally but no trading activity yet
Cash at Bank	£8,000,000	Extremely healthy liquidity—ample cash reserves
Net Assets	£8,000,000	Strong equity base; no liabilities reported
Shareholders’ Funds	£8,000,000	Fully funded by equity; no debt
Account Category	Dormant	No trading income or expenses during the year
Directors’ Liability	Single Director	Clear governance structure
Filing Status	Up to date	No overdue returns or accounts

Interpretation:
The company’s financial "pulse" is steady and strong, with no sign of cash flow issues or debts, indicating excellent financial "vital signs." The dormant status implies the company has not yet begun trading, so there are no operational risks or income volatility to analyze.

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3. Diagnosis

Overall Financial Condition:
The company is in perfect financial health due to its dormant status and substantial cash reserves. This means it has no operational "symptoms" such as losses, liabilities, or cash flow problems. It can be likened to a patient in excellent health but currently resting without physical exertion.

Underlying Business Health:
Although financially sound, the dormant status suggests no active business operations or revenue generation. The company is effectively in a preparatory or holding phase, with significant capital available for future activity. The presence of a single controlling director and shareholder with full ownership indicates clear decision-making authority.

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4. Prognosis

Future Financial Outlook:
The company is well-positioned to commence trading or investment activities with a robust capital base. However, its financial health will depend on how effectively it deploys its cash reserves into operations or investments. Without active business, the dormant status will continue, which is financially neutral but offers no income growth.

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5. Recommendations

• Initiate Trading or Business Activities: To move beyond dormancy and generate income, the company should plan and commence trading in its retail segments (mail order, internet sales, sports goods retail). This will activate cash flow cycles and create revenue streams.

• Maintain Strong Financial Controls: As the company transitions to active trading, implement rigorous financial management to monitor cash flow, working capital, and profitability to avoid distress symptoms.

• Regular Compliance: Continue timely filing of accounts and confirmation statements to maintain good corporate standing.

• Risk Management: Once operational, assess risks related to inventory, receivables, and market competition to ensure sustainable growth.

• Governance Review: Although current governance is clear, consider appointing additional directors or advisors as business complexity grows.

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