DAVID ELLIS CONSULTING LIMITED

Executive Summary

DAVID ELLIS CONSULTING LIMITED is currently dormant but maintains a strong financial position with substantial net assets and no liabilities. The company is compliant with all filing requirements and demonstrates financial stability, although it is not generating operational income. To improve financial wellness, the company should consider strategic plans for reactivation, maintain robust governance, and ensure continued compliance.

DAVID ELLIS CONSULTING LIMITED - Analysis Report

Company Number: 13143969

Analysis Date: 2025-07-29 20:54 UTC

Financial Health Assessment Report
Company: DAVID ELLIS CONSULTING LIMITED
Date of Report: 2024-10-04

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1. Financial Health Score: B (Good)

Explanation:
This company shows a strong balance sheet with substantial net current assets and net assets relative to its minimal liabilities, indicating a robust capital base. Being dormant means no active trading or operational revenue, which limits the assessment of profitability or cash flow health. However, the absence of liabilities and consistent positive net assets are positive signs of financial stability. The "B" grade recognizes this solid financial foundation but notes the lack of active business operations as a limiting factor in overall financial vitality.

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2. Key Vital Signs:

Metric	Latest Value (31 Jan 2024)	Interpretation
Account Category	Dormant	No significant trading activity during the year; no revenue or expenses recorded.
Net Current Assets	£279,361	Healthy working capital; current assets significantly exceed current liabilities (which are zero).
Net Assets (Shareholders’ Funds)	£279,361	Strong equity position; company has positive net worth and no debts recorded.
Share Capital	£3.00	Minimal paid-up capital, typical for a micro-entity or dormant company.
Liabilities	£0	No short or long-term liabilities; no creditor pressure or debt burden.
Employees	0	No staff employed, consistent with dormant status.
Filing Status	Up to date	No overdue accounts or confirmation statements; compliant with filing deadlines.
Directors	1 active director	Corporate governance intact, though two directors resigned in 2023.

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3. Diagnosis:

"Dormant but financially stable"

The company currently exhibits the financial "symptom" of dormancy—no trading activity or income generation—which means it is not currently generating operational cash flows. Despite this, its financial "vital signs" such as net current assets and net assets are healthy and stable, with no liabilities. This is akin to a patient who is at rest but has no signs of distress or illness; the body (company) is stable but inactive. The lack of liabilities and positive net assets indicate no financial distress or solvency issues. However, because the company is dormant, it is not generating revenue or profit, which limits growth potential and the ability to cover operational expenses if trading were to resume.

The resignation of two directors in late 2023 might indicate a change in management or strategy, but the remaining director continues to maintain governance. The company’s compliance with filing deadlines adds to its good standing.

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4. Recommendations:

• Evaluate Business Strategy: If the intention is to reactivate trading, consider a detailed business plan to generate revenue and cash flow. Dormancy can preserve resources but also means no operational income.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good legal standing.
• Monitor Cash Reserves: Although current assets appear strong, understand the composition of these assets (likely cash or equivalents) and ensure they are safeguarded appropriately.
• Consider Capital Injection if Resuming Activity: The minimal share capital suggests limited financial buffer for operational risks. Increasing capital or securing funding could support future business activity.
• Review Director Structure: With two directors having resigned, confirm that governance arrangements remain strong with the current sole director or consider appointing additional directors to manage responsibilities effectively.
• Plan for Tax and Regulatory Considerations: If reactivation occurs, prepare for corporation tax, VAT, and other statutory obligations.

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