DAWID ESALES SERVICES LTD

Executive Summary

DAWID ESALES SERVICES LTD exhibits a stable financial profile typical of a micro-entity with consistent growth in net assets and positive working capital. The company is financially solvent and compliant but would benefit from strengthening its capital base and exploring measured growth opportunities to improve resilience. Overall, the business shows healthy financial "vital signs" with no immediate distress symptoms.

DAWID ESALES SERVICES LTD - Analysis Report

Company Number: 12754365

Analysis Date: 2025-07-29 12:42 UTC

Financial Health Assessment of DAWID ESALES SERVICES LTD

---

1. Financial Health Score: B

Explanation:
DAWID ESALES SERVICES LTD demonstrates a stable and improving financial position for a micro-entity within the retail internet sales sector. While the absolute values are modest, consistent growth in net assets and shareholders’ funds over five years indicates a sound financial footing without signs of distress. The "B" grade reflects a generally healthy status with room for strengthening liquidity and capital base.

---

2. Key Vital Signs

Metric	2024 (£)	Interpretation
Net Current Assets (Working Capital)	642	Positive working capital indicates the company can cover short-term obligations — a healthy "pulse."
Net Assets (Equity)	742	Growth from £416 in 2020 to £742 in 2024 shows retained earnings and/or capital injections — "good heart function."
Current Liabilities	642	Low level of short-term liabilities relative to assets, suggesting manageable "debts" load.
Share Capital	100	Minimal capital base typical of micro-entities; could be a "weak bone structure" needing reinforcement.
Employees	0	No employees, typical for micro-entities; could imply low operating overhead or outsourced activities.

Additional Notes:

• No audit required under micro-entity exemption, reflecting simple financial structure.
• Timely filing of accounts and confirmation statements indicates good compliance and governance "hygiene."
• Sole director and 100% shareholder control reduces complexity but also concentration risk.

---

3. Diagnosis

The financial "symptoms" show a micro business with stable but modest scale operations. The increasing net assets and current assets over liabilities reflect a company maintaining a positive financial "heartbeat"—it is solvent, meeting obligations, and accumulating equity. The absence of employees and low liabilities suggest a lean cost structure and low operational risk.

However, the company’s small capital base and limited asset size indicate vulnerability to economic shocks or unexpected expenses, akin to a patient with a strong but fragile constitution. The business appears to be in a maintenance phase rather than aggressive growth, which is appropriate for its scale and sector.

---

4. Recommendations

• Strengthen Capital Base: Consider increasing share capital or retained earnings through profitability to improve financial resilience — "building stronger bones."
• Enhance Liquidity Management: Maintain positive working capital and monitor cash flow closely to avoid liquidity "breathlessness."
• Explore Growth Opportunities: Evaluate potential to scale operations, including hiring or outsourcing strategically, to enhance revenue and profitability.
• Risk Management: Implement basic risk controls to safeguard against concentration risk from sole ownership and limited operational scale.
• Continue Compliance Vigilance: Maintain timely statutory filings and transparent governance to sustain regulatory "health."
• Financial Planning: Develop cash flow forecasts and budgets to anticipate financial needs and avoid surprises.

---