DAVINIA TAYLOR LIMITED

Executive Summary

Davinia Taylor Limited exhibits a strong and improving financial position with growing net current assets and shareholders’ funds, supported by positive cash flow and director-backed liquidity. The company’s compliance and financial stewardship appear sound, with no immediate credit concerns. Approval is recommended for credit facilities, with routine monitoring of debtor collections and director account balances advised.

DAVINIA TAYLOR LIMITED - Analysis Report

Company Number: 12828228

Analysis Date: 2025-07-20 16:40 UTC

1. Credit Opinion: APPROVE

Davinia Taylor Limited demonstrates a solid financial position with consistent growth in net current assets and shareholders’ funds over recent years. The company maintains positive working capital and has no overdue filings, indicating good compliance and financial discipline. Although the company is relatively small and does not employ staff, the director’s advances and repayments reflect active management of liquidity. No adverse director conduct or financial red flags are present. The company’s ability to meet short-term liabilities comfortably supports approval for modest credit facilities.

2. Financial Strength:

The balance sheet shows net current assets increasing from £9,088 in 2021 to £37,174 in 2024, driven by rising debtors and controlled current liabilities. Shareholders’ funds have grown from £9,088 to £37,174 in the same period, indicating retained earnings accumulation and financial strengthening. Cash balances have improved from £0 in 2021 to £11,294 in 2024, supporting liquidity. The company carries minimal share capital (£1), typical of small private companies, and depends significantly on director advances for working capital. Overall, the balance sheet is healthy with no long-term liabilities reported.

3. Cash Flow Assessment:

The company shows a healthy liquidity profile with current assets (£56,324) well above current liabilities (£19,150) as of 2024. Cash reserves improved by approximately £2,300 year-on-year, and debtors have increased to £45,030, reflecting either higher sales or extended credit terms. The increase in creditors and corporation tax liabilities is manageable given the growth in assets. Director’s current accounts show a net receivable balance, indicating the director has provided funds to support operations. The absence of employees and modest expenses reduces cash flow strain, suggesting stable operating cash flow.

4. Monitoring Points:

• Debtor aging and collection efficiency to ensure cash inflows match or exceed credit extended.
• Corporation tax and other creditor balances to monitor timely settlement and avoid accrual build-up.
• Director’s account balances as they reflect reliance on personal funds for working capital.
• Turnover and profitability trends (not disclosed here) to confirm sustainable earnings supporting liquidity.
• Any changes in company activity or scale, given the small size and single-director structure.