DAY’S DEVELOPMENTS LTD

Executive Summary

DAY’S DEVELOPMENTS LTD shows early financial distress characterized by negative net assets and working capital deficit, typical of a start-up facing initial funding and liquidity challenges. Prompt actions to improve cash flow, inject capital, and manage costs are critical to restore financial health and avoid insolvency risks. Early intervention and close financial monitoring will be key to a positive outlook.

DAY’S DEVELOPMENTS LTD - Analysis Report

Company Number: 14683202

Analysis Date: 2025-07-29 12:28 UTC

Financial Health Assessment for DAY’S DEVELOPMENTS LTD

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1. Financial Health Score: D

Explanation:
The score reflects a company showing early signs of financial distress with negative net assets and a working capital deficit. This grade indicates caution and the need for prompt remedial actions to restore financial wellbeing.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	728	Very low cash or liquid resources to cover short-term needs.
Current Liabilities	8,000	Debts payable within one year; significantly higher than current assets.
Net Current Assets (Working Capital)	-7,272	Negative working capital suggests difficulty meeting short-term obligations.
Total Net Assets	-7,272	Company's liabilities exceed its assets, indicating insolvency on balance sheet.
Shareholders' Funds	-7,272	Negative equity reflects accumulated losses or initial funding challenges.
Number of Employees	2	Small team consistent with micro-entity classification.

Interpretation:
The company’s vital signs—especially negative net assets and negative working capital—are symptoms of financial strain. The company currently owes more than it owns and may face liquidity issues.

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3. Diagnosis

DAY’S DEVELOPMENTS LTD is a newly incorporated micro-entity (less than 1 year old) operating in the building completion and finishing sector. Despite the small scale and early stage, the financials reveal a balance sheet "symptom" of distress:

• Negative net assets (-£7,272) indicate that liabilities exceed assets, a sign of insolvency from an accounting perspective.
• Working capital deficit (-£7,272) means the company lacks the liquid resources to cover current debts, which could impair day-to-day operations.
• The balance sheet shows a creditor figure (£8,000) that is not supported by sufficient current assets (£728).
• This likely reflects initial start-up funding challenges or early operational losses.
• Given the company’s youth, this could be a temporary cash flow issue if planned capital injections or revenue growth materialize.

The company is controlled by Mr. Richard Andrew Day, who holds majority ownership and directorship. The small employee count (2) and micro-entity status suggest limited operational complexity.

Overall, the company exhibits symptoms of financial fragility typical of a start-up facing initial funding or cash flow constraints. Without intervention, these could worsen, risking insolvency or inability to meet creditor demands.

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4. Recommendations

To restore financial health and avoid worsening "symptoms," the company should consider the following actions:

1. Improve Liquidity:

   • Inject additional shareholder funds or secure external financing to cover immediate liabilities.
   • Review payment terms with creditors to negotiate extended timelines.
   • Accelerate receivables collection and control expenses rigorously.

2. Enhance Cash Flow Management:

   • Prepare detailed cash flow forecasts highlighting timing of receipts and payments.
   • Implement tight budget controls to avoid overspending.
   • Explore short-term credit lines or overdrafts with banks to ease liquidity pressure.

3. Operational Efficiency:

   • Monitor project profitability closely to avoid losses on contracts.
   • Consider scaling operations cautiously to prevent overextension.
   • Evaluate staffing needs relative to workload and cost.

4. Regular Financial Monitoring:

   • Establish monthly financial reviews to detect issues early.
   • Engage professional advice for restructuring if cash flow does not improve.
   • Maintain compliance with filing deadlines to avoid penalties or legal complications.

5. Stakeholder Communication:

   • Keep shareholders and creditors informed transparently about financial position and recovery plans.
   • Build trust to facilitate support during recovery phase.

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Medical Analogy Summary

DAY’S DEVELOPMENTS LTD currently presents with symptoms akin to a patient with low blood pressure and poor circulation—insufficient liquidity and negative net assets indicate the company’s "financial heart" is struggling to pump funds effectively to meet obligations. Immediate "treatment" via capital infusion and cash flow management is essential to stabilize the condition and prevent a critical failure.

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