Company Number: 12453379

Analysis Date: 2025-07-20 12:05 UTC

Financial Health Assessment for DAYBYDAY CARE LTD

---

1. Financial Health Score: B

Explanation:
DAYBYDAY CARE LTD demonstrates solid financial footing for a micro-entity operating in the domiciliary care sector, with steady growth in net assets and working capital. The company shows healthy liquidity and asset base expansion, supported by increasing employee headcount, indicating business growth. However, the presence of significant accruals and deferred income alongside medium-term liabilities suggests moderate financial strain that warrants monitoring. The company is financially stable but not yet at an "A" grade level due to these liabilities and the relatively modest equity base.

---

2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£26,862	Growth from prior year signals investment in long-term resources, which supports capacity building.
Current Assets	£93,487	Increased cash or receivables indicate improved liquidity and operational cash flow.
Current Liabilities	£32,389	Moderate short-term debts; manageable relative to current assets (Net Current Assets positive).
Net Current Assets (Working Capital)	£61,098	Healthy working capital signals ability to cover short-term obligations comfortably.
Total Assets Less Current Liabilities	£87,959	Shows overall asset strength after covering short-term debts.
Creditors Due After One Year	£23,053	Medium-term liabilities that reduce available capital; requires planning for repayment.
Accruals and Deferred Income	£49,038	High level suggests obligations or income recognition timing which could obscure cash flow clarity.
Net Assets (Equity)	£15,868	Positive and increasing equity base, but relatively low, indicating modest retained profits.
Employee Numbers	21 (average)	Growth from 12 in prior year reflects business expansion and increased operational scale.

---

3. Diagnosis: Financial "Health" of DAYBYDAY CARE LTD

DAYBYDAY CARE LTD appears to be in a stable but cautiously growing phase. The company has shown consistent improvements in both fixed and current assets, suggesting investments in infrastructure and an ability to generate cash or receivables. The working capital position is robust, which is a classic marker of "healthy cash flow" and operational efficiency, enabling the company to meet short-term obligations without stress.

However, the sizable accruals and deferred income resemble "symptoms of financial tension" — these may represent income received but not yet earned, or expenses accrued but unpaid, which can mask the true cash position if not closely managed. Additionally, the medium-term creditors (liabilities due after more than one year) indicate ongoing obligations that the company must plan for to avoid liquidity crunches.

The net asset value has steadily increased from £273 in 2019 to £15,868 in 2023, reflecting retained profits and capital injections. This is a positive sign, but the relatively low equity base compared to total assets means the company is still leveraging external financing and obligations.

Growth in employee numbers is a positive "vital sign" that the business is expanding, but it also implies increased operational costs and the need to manage payroll and productivity efficiently.

---

4. Recommendations: Prescription for Financial Wellness

• Manage Accruals and Deferred Income: Conduct a detailed review of accruals and deferred income to ensure accurate cash flow forecasting. Clear communication with clients and suppliers to align revenue recognition and payment schedules will reduce liquidity risk.

• Plan for Medium-Term Liabilities: Develop a financial plan to address the £23,053 owed beyond one year. Consider restructuring debt or setting aside reserves to avoid future cash flow stress.

• Strengthen Equity Position: Explore opportunities to increase shareholder funds via retained earnings or capital injection to reduce reliance on creditors and improve financial resilience.

• Monitor Working Capital: Continue to track current assets and liabilities closely, ensuring that the company maintains its strong liquidity position to support operational flexibility.

• Operational Efficiency: As the workforce grows, implement cost controls and productivity measures to ensure that increased employee costs translate into proportional revenue growth.

• Regular Financial Reviews: Establish quarterly financial health checks to detect early "symptoms of distress" and enable timely corrective actions.

---