DB ADHD CONSULTANCY LTD

Executive Summary

DB ADHD Consultancy Ltd maintains a healthy cash position and positive equity, reflecting an overall stable financial state. However, recent declines in net assets and working capital alongside rising liabilities indicate emerging financial stress that warrants proactive management. By focusing on profitability, revenue growth, and liability control, the company can strengthen its financial wellness and sustain long-term viability.

DB ADHD CONSULTANCY LTD - Analysis Report

Company Number: 13499918

Analysis Date: 2025-07-20 18:57 UTC

Financial Health Assessment Report for DB ADHD CONSULTANCY LTD

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1. Financial Health Score: B

Explanation: The company shows generally sound financial health with positive net assets and working capital, indicating an ability to meet short-term obligations and maintain operations. However, there is a notable decline in net current assets and net assets in the latest financial year, suggesting some emerging stress that requires attention. The absence of debt beyond short-term liabilities and a good cash position underpin a solid foundation, but the downward trend in equity and current assets warrants cautious monitoring.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	88,414	Adequate liquid resources, primarily cash, reflecting healthy cash flow but reduced from 2023.
Cash	88,414	All current assets are cash, indicating high liquidity but no receivables in 2024.
Current Liabilities	50,313	Short-term debts and obligations; manageable but has increased since 2023.
Net Current Assets (Working Capital)	38,101	Positive, indicating the company can cover short-term liabilities; decreased by ~49% from 2023.
Net Assets (Equity)	40,343	Positive shareholders' equity, but dropped nearly 48% from previous year, signaling profit erosion or asset write-downs.
Tangible Fixed Assets (Net Book Value)	2,242	Small asset base, stable with slight depreciation taken into account.
Debtors	0	Absence of receivables in 2024, contrasting with £21,000 in 2023; may imply quicker cash collection or loss of credit sales.
Loan to Director	Repaid	£21,000 loan to director repaid in 2024, improving cash flow and reducing related party risk.
Employee Count	1	Sole employee (likely the director), consistent with small-scale operation.

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3. Diagnosis: Financial "Health" and "Symptoms"

• Healthy Cash Flow: The company maintains a healthy cash position, ensuring it can meet immediate expenses—a vital sign akin to a strong pulse in a patient.
• Declining Net Assets: The nearly 50% reduction in net assets and working capital signals "symptoms of distress," possibly due to reduced profitability or increased liabilities.
• Liquidity vs. Receivables: The elimination of debtors in 2024 could be a positive sign of efficient collections, but it also might reflect a drop in credit sales or revenue, which needs further investigation.
• Short-Term Liabilities Rising: The increase in current liabilities, especially taxation and social security costs, suggests increased operational costs or tax burdens that may strain cash flow if not managed.
• Small Asset Base: Limited fixed assets indicate the company is not capital intensive, common in consultancy firms, which reduces depreciation pressure but may limit expansion capacity.
• Single Director and Owner: Concentrated control with Mrs. Denise Kristiansen owning 75-100% shares and acting as director reduces complexity but increases dependency risk on one individual.

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4. Recommendations: Prescriptions for Financial Wellness

• Monitor Profitability: Investigate causes behind the drop in net assets and working capital. Consider cost control measures or pricing adjustments to improve margins.
• Revenue Growth Strategy: With a reduction in debtors, assess whether sales have decreased. Implement marketing or client acquisition strategies to boost turnover and rebuild receivables if appropriate.
• Manage Liabilities: Keep a close watch on rising current liabilities, particularly tax and social security costs. Engage with a tax advisor to optimize tax planning and cash flow.
• Build Cash Reserves: Although cash is currently strong, sustaining or increasing cash reserves will provide a buffer against operational fluctuations.
• Consider Diversification: Explore opportunities to diversify services or client base to reduce dependency on any single revenue stream.
• Succession and Control Planning: Given sole ownership and directorship, develop contingency plans for management or ownership transitions to mitigate business continuity risks.

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