DB1690 LIMITED

Executive Summary

DB1690 LIMITED is a young micro-entity showing stable but fragile financial health with minimal net assets and working capital. The company currently meets its short-term obligations but should focus on strengthening cash reserves and increasing revenue for a more robust financial future. Overall, it is in a stable early-stage condition but requires careful financial management to ensure sustainable growth.

DB1690 LIMITED - Analysis Report

Company Number: 14399124

Analysis Date: 2025-07-20 11:02 UTC

Financial Health Assessment for DB1690 LIMITED (as of 29 February 2024)

---

1. Financial Health Score: C

Explanation:
DB1690 LIMITED shows signs of a very nascent business with minimal financial activity, typical for a micro-entity in its early stage. The company has a very small net asset base (£152) and net current assets (£152), indicating a fragile financial position. While it is not showing distress or losses, the very low level of working capital and net assets suggests limited financial resilience. Therefore, the business is graded as a "C"—stable but with significant room to build financial strength.

---

2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£2,456	Modest short-term resources, primarily cash or receivables.
Current Liabilities	£2,304	Obligations due within a year, nearly equal to current assets, indicating tight liquidity.
Net Current Assets (Working Capital)	£152	Positive but very low, meaning the company can just cover its short-term debts with a small margin.
Net Assets (Equity)	£152	Minimal shareholders’ funds indicating limited retained earnings or capital injection so far.
Average number of employees	1	Sole director-operated, minimal overheads but limited capacity for growth.
Account Category	Micro	Smallest filing requirements, expected low scale of operations.
Company Age	~1.5 years	Early stage of business lifecycle; financials likely reflect startup phase.

Interpretation of Vital Signs:
The "vital signs" reflect a company in the early growth phase with a "healthy but delicate" cash flow position. The working capital is positive, which is a good symptom—there are no immediate liquidity symptoms of distress such as negative working capital. However, the narrow margin means any unexpected expenses or drop in revenue could quickly lead to cash flow strain.

---

3. Diagnosis

The financial data reveals a young and very small consultancy business with limited financial resources. The company’s balance sheet is lean with very modest assets and liabilities. The positive net current assets indicate the company’s short-term financial "pulse" is stable; it can meet its short-term obligations but just barely.

There are no signs of accumulated losses, and the company is not in liquidation or facing overdue filings, which is a positive indicator of compliance and operational continuity. The single director, who is also the sole significant controller, suggests tight management but also a risk of dependency on one individual’s input.

While the company is not showing symptoms of financial distress, it is still in a fragile state due to its limited financial cushion and low working capital. The lack of an audit and the exemption as a micro-entity mean financial reporting is simplified but also less transparent.

---

4. Recommendations

• Build Working Capital: Focus on increasing current assets, primarily cash reserves, to improve the margin of safety against liabilities. This can be done by accelerating receivables, controlling payables, or increasing sales.
• Increase Revenue and Profitability: As an engineering and technical consulting firm, aim to secure steady contracts to generate sustainable cash inflows and build retained earnings.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Consider Financial Forecasting: Establish basic budgeting and cash flow forecasting to anticipate liquidity needs and avoid cash crunches.
• Diversify Leadership Input: While single director control is common in micro-entities, consider advisory support or additional directors to reduce operational risk.
• Prepare for Growth: As the company matures, plan for scaling operations, including possible investment in fixed assets or hiring, balanced against maintaining healthy liquidity.

---