Company Number: 13146978

Analysis Date: 2025-07-20 16:56 UTC

Financial Health Assessment for DAY AESTHETICS LTD (as of 31 January 2024)

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1. Financial Health Score: A- (Strong)

Explanation:
DAY AESTHETICS LTD shows strong financial health for a small private limited company in the dental and medical practice sector. The company has a robust cash position, positive net current assets, and consistent growth in shareholders’ funds. The absence of liabilities beyond current obligations and no overdue filings further supports a well-managed financial profile. Minor considerations around tax liabilities and limited asset diversity prevent a perfect grade, but overall the company is financially sound.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Cash at Bank	£122,471	Healthy liquidity; strong cash reserve to meet immediate expenses.
Current Liabilities	£31,141	Manageable short-term obligations, primarily corporation tax.
Net Current Assets	£91,330	Positive working capital indicating good short-term financial stability.
Net Assets (Equity)	£91,330	Solid equity base reflecting retained earnings and business value.
Share Capital	£1.00	Minimal share capital typical for small private companies.
Average Employees	1 (Director)	Lean operation, likely owner-managed dental practice.
Filing Status	Up to date	No overdue accounts or confirmation statements; good compliance.

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3. Diagnosis: Financial Condition and Business Health

• Liquidity and Cash Flow:
  The company exhibits a "healthy cash flow pulse," with cash reserves exceeding current liabilities by nearly four times (£122k vs. £31k). This indicates strong liquidity, critical for meeting short-term obligations and unforeseen expenses. The positive net current assets of £91k reinforce the ability to fund day-to-day operations without external borrowing.

• Capital Structure and Equity:
  Shareholders’ funds stand at £91,330, reflecting accumulated profits retained in the business. This is a positive symptom of profitability and prudent financial management. The minimal share capital (£1) is common in small private companies and not a concern, as equity mainly derives from retained earnings.

• Profitability and Reserves:
  While the Profit & Loss account details are not fully disclosed, the increase in net assets from £72k (2023) to £91k (2024) implies profitable operations and growth. The absence of long-term liabilities or debts suggests the company is not burdened by financial distress or leverage risks.

• Tax Position:
  Current liabilities include £30,109 corporation tax, indicating taxable profits. This is typical and not a sign of distress, but the company should ensure timely tax payments to avoid penalties.

• Operational Scale:
  With only one employee (the director), the company operates efficiently but may face capacity constraints limiting growth or scalability. This lean structure reduces overheads but may require future investment in personnel for expansion.

• Compliance and Governance:
  The company is current on all filings, indicating good governance and management discipline. No signs of director disqualification or legal issues are present.

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4. Recommendations: Improving Financial Wellness

• Maintain Strong Cash Management:
  Continue to monitor cash flow closely, ensuring sufficient liquidity to cover tax liabilities and operational costs. Consider setting aside provisions for corporation tax payments to avoid cash flow strain at payment dates.

• Plan for Growth and Scaling:
  Evaluate the potential need for additional staff or investment in equipment to expand capacity and increase revenue streams. This may require review of financing options.

• Diversify Asset Base:
  While cash is vital, consider investing in fixed assets or technology that can enhance service delivery and operational efficiency, balancing liquidity and growth.

• Tax Planning and Compliance:
  Engage with a tax advisor to optimize tax liabilities and ensure all filings and payments are timely, avoiding any risk of penalties.

• Financial Reporting Enhancement:
  Although exempt from audit, consider internal financial reviews or external advisory to strengthen financial controls and strategic decision-making as the business grows.

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