Company Number: 14253504

Analysis Date: 2025-07-29 13:06 UTC

Financial Health Assessment of DAZE UK LTD

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1. Financial Health Score: B

Explanation:
DAZE UK LTD demonstrates a generally sound financial position with positive net assets and improving shareholders' funds over the last two years. There are some unusual debtor figures and creditor classifications that require attention, but overall, the company maintains a healthy liquidity position and equity base relative to its size and stage of operation. The score reflects a stable financial state with room for improvement in receivables management and clarity in accounting presentation.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Current Assets	13,462	11,418	Slight increase; positive for liquidity
Cash at Bank	6,055	3,335	Healthy cash flow with near doubling cash
Debtors (Trade Receivables)	-4,443	8,083	Negative figure in 2024 unusual; potential accounting or collection issue
Current Liabilities	4,629	3,814	Modest increase, manageable given assets
Net Current Assets (Working Capital)	14,053	8,555	Strong positive working capital, healthy short-term financial buffer
Net Assets / Shareholders' Funds	9,424	4,741	Nearly doubled, indicating growth in retained earnings or equity injections
Number of Employees	1	1	Small microenterprise scale

• Debtors anomaly: The negative debtor balance in 2024 (-£4,443) is a symptom of possible accounting irregularity or prepayments recognized under debtors. This is a "symptom of distress" in terms of receivables management or bookkeeping accuracy and should be clarified.

• Cash flow: The increase in cash from £3,335 to £6,055 is a "healthy pulse" indicating cash inflows exceed outflows, supporting operational stability.

• Working capital: Net current assets significantly positive (£14k) signal good liquidity to meet short-term obligations.

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3. Diagnosis

DAZE UK LTD is a young, micro private limited company engaged in building cleaning and business support services. The financial "vitals" suggest the company is in stable condition with increasing net assets and cash reserves, indicating growth and sound capital management.

However, the negative debtors figure in 2024 is a notable "symptom" that requires diagnostic follow-up. This could be due to misclassification of prepayments or adjustments and may mask underlying issues in receivables collection or accounting treatment.

The company maintains low employee headcount, consistent with its micro status. The current liabilities are manageable and well-covered by current assets and cash, suggesting no immediate liquidity concerns.

The presence of a parent company creditor balance indicates some external financing or intercompany loans, which appear stable and increasing moderately. This external liability should be monitored for repayment terms to avoid future liquidity strain.

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4. Recommendations

• Clarify and rectify debtor balances: Investigate the cause of the negative £4,443 debtor figure for 2024. Ensure accurate classification between prepayments and trade receivables. This will improve the "diagnostic clarity" of working capital health.

• Enhance receivables management: Establish robust credit control and timely collection processes to avoid potential cash flow disruptions, especially as the company grows.

• Maintain healthy cash reserves: Continue monitoring cash flow to keep liquidity at a healthy level, acting as a financial "heartbeat" for ongoing operations.

• Review intercompany debts: Examine the terms and repayment schedule of amounts due to the parent company (£4,629 in 2024) to avoid future cash flow strain.

• Prepare for growth: As net assets and shareholders’ funds increase, consider strategic investments in assets or personnel to support expanding operations while maintaining financial prudence.

• Ensure compliance and transparency: Maintain timely and accurate filings with Companies House and ensure accounting policies are clearly documented, to avoid regulatory or audit "symptoms" that could affect business reputation.

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