DB BIERNAS LIMITED

Executive Summary

DB BIERNAS LIMITED is a micro-entity with stable but minimal financial resources, showing positive net assets and working capital but very low cash reserves. The company is in a nascent stage with a lean operational structure and no fixed assets, indicating limited operational scale and financial buffer. Strengthening cash flow, increasing equity, and careful working capital management are recommended to improve financial resilience and support future growth.

DB BIERNAS LIMITED - Analysis Report

Company Number: 13145484

Analysis Date: 2025-07-29 20:50 UTC

Financial Health Assessment Report for DB BIERNAS LIMITED
Assessment Date: Post 31 January 2024 financial year end

---

1. Financial Health Score: C (Fair)

Explanation:
DB BIERNAS LIMITED exhibits stability with positive net assets and working capital. However, the absolute scale of financial resources is minimal, reflecting a very small micro-entity with limited operational scale. The financial statements show no significant growth or accumulated profits yet, indicating an embryonic stage with a cautious outlook.

---

2. Key Vital Signs

Metric	Value (2024)	Interpretation
Net Current Assets	£10	Positive but negligible working capital; indicates minimal liquidity buffer.
Net Assets (Shareholders' Funds)	£20	Positive equity is a healthy sign, but extremely low capital base limits operational resilience.
Cash	£0 - £1	Very low cash reserves, potentially a symptom of tight cash flow.
Fixed Assets	£0	No investment in long-term assets, consistent with a new or asset-light business.
Number of Employees	2	Very small workforce, typical of a micro-company.

Interpretation:

• The company’s working capital is positive, meaning current assets exceed current liabilities, which is akin to a patient having a stable pulse and breathing: the business is not in immediate distress.
• The net assets are positive but minimal, suggesting limited financial muscle to absorb shocks or invest for growth.
• The cash position is almost non-existent, which could indicate symptoms of tight liquidity or just timing of cash flows around the reporting date.
• Lack of fixed assets implies the business model is likely service-based or reliant on leased/outsourced resources.

---

3. Diagnosis

Overall Financial Condition:
DB BIERNAS LIMITED is in an early-stage, micro-entity phase with a very small capital base and limited financial resources. The company shows signs of survival with no immediate financial distress—positive net assets and current assets exceeding current liabilities are promising “vital signs.” However, the company’s financial “immune system” is weak due to minimal cash reserves and low equity, indicating vulnerability to unexpected expenses or downturns.

The limited scale of operations (2 employees) and absence of fixed assets align with a lean, possibly service-oriented freight transport business. The director is also the sole significant controller, reflecting a tightly held management structure.

Potential Risks:

• Cash flow tightness could cause operational strain if receivables or payments delay.
• Minimal capital limits investment capacity or ability to scale rapidly.
• Dependence on a single director and small team could increase operational risk.

---

4. Recommendations

To strengthen the financial wellness and improve prognosis, the following actions are advised:

1. Build Cash Reserves:
   Actively manage cash flow to increase liquid reserves. This can be done by negotiating faster customer payments or controlling payables carefully. Maintaining a “healthy cash flow” is essential to avoid liquidity distress.

2. Increase Equity or External Funding:
   Consider injecting additional capital or seeking micro-business funding to build a more robust equity base. This will provide a buffer against unforeseen expenses and enable potential investment in assets or growth.

3. Monitor Working Capital:
   Keep a close watch on current assets and liabilities to ensure net current assets remain positive. Early intervention on any signs of working capital strain can prevent “symptoms of distress.”

4. Plan for Growth and Asset Investment:
   As business matures, evaluate opportunities to invest in fixed assets or technology that can improve efficiency and competitiveness.

5. Governance and Risk Management:
   Given the sole director model, establish clear processes for compliance, risk assessment, and contingency planning to mitigate single-person dependency.

---