DAVIES AND FLETCHER GROUP LTD

Executive Summary

Davies And Fletcher Group Ltd demonstrates a stable and improving financial condition with positive net assets and sufficient liquidity, characteristic of a healthy micro-entity. The company’s financial health is sound but shows modest operational activity, indicating opportunity for growth and strengthening cash flow management. Continued prudent financial oversight and strategic operational development will support future stability and expansion.

DAVIES AND FLETCHER GROUP LTD - Analysis Report

Company Number: 14384548

Analysis Date: 2025-07-29 18:46 UTC

Financial Health Assessment of Davies And Fletcher Group Ltd

---

1. Financial Health Score: B

Explanation:
Davies And Fletcher Group Ltd exhibits solid foundational financial health for a micro-entity. The company has positive net assets and shareholder funds, showing a transition from a previous net liability position. The liquidity position is adequate with positive net current assets, signaling a "healthy cash flow" symptom. However, the relatively small scale and limited activity (no employees) suggest that the company is in an early or stable but modest operational phase, not yet demonstrating significant growth or scalability. Hence, a grade of B reflects good stability but room for improvement in growth and operational robustness.

---

2. Key Vital Signs

Metric	2023 (£)	2024 (£)	Interpretation
Current Assets	90,532	90,470	Stable short-term assets, mainly cash or receivables
Current Liabilities	39,754	53,763	Slight increase in short-term debts
Net Current Assets	50,778	36,707	Positive but decreased working capital, still healthy
Net Assets (Equity)	-1,650	36,707	Significant improvement, now positive equity
Shareholders' Funds	-1,650	36,707	Matches net assets, showing owners' investment & retained profits

Interpretation:

• The company’s liquidity ("vital pulse") is stable with net current assets remaining positive, indicating it can cover immediate liabilities—a sign of healthy cash flow management.
• The jump from negative to positive net assets is a key "symptom of recovery," suggesting the company has strengthened its financial base.
• The slight rise in current liabilities should be monitored, but it’s not alarming at this stage.
• No employees indicates low operational complexity but also limited business scale.

---

3. Diagnosis

The company shows a generally healthy financial condition typical of a micro-entity in early growth or consolidation stage. The positive net assets and shareholders’ funds reflect that the company is solvent and has a stable equity base. The positive net current assets denote that short-term assets exceed liabilities, supporting operational liquidity.

However, the absence of employees and relatively flat current assets across the year suggests limited business expansion or operational activity. The company operates in real estate letting and sales, which could imply reliance on asset management rather than active trading, consistent with the financial profile.

No signs of distress such as insolvency, overdue filings, or negative cash flow symptoms are present. The financial statements were prepared under micro-entity provisions, indicative of simplicity in operations.

---

4. Recommendations

• Monitor Cash Flow and Liabilities: Although liquidity is currently healthy, the increase in current liabilities merits ongoing monitoring to avoid future liquidity stress. Maintaining a buffer above current liabilities is advisable.
• Operational Scaling: Consider strategies to grow operations or diversify income streams to improve profitability and build resilience against market fluctuations in real estate.
• Financial Planning: Develop a cash flow forecast to anticipate obligations and opportunities, ensuring the company maintains its "healthy cash flow" rhythm.
• Governance and Documentation: Maintain timely filing and compliance to avoid penalties or reputational issues, which appear well-managed currently.
• Asset Utilization: Explore efficient management or monetization of owned real estate assets to enhance returns and financial flexibility.
• Risk Assessment: Conduct periodic risk reviews, especially in the real estate market, to anticipate downturns or opportunity windows.

---