DBR CONSULTANCY SERVICES LIMITED

Executive Summary

DBR CONSULTANCY SERVICES LIMITED is currently experiencing significant financial distress marked by a drastic decline in liquidity and net worth, resulting in a Financial Health Score of D. Immediate action to improve cash flow and restore equity is essential to prevent further deterioration and ensure business continuity. With focused management and possible capital support, the company can stabilize and work towards sustainable growth.

DBR CONSULTANCY SERVICES LIMITED - Analysis Report

Company Number: 13910457

Analysis Date: 2025-07-20 13:52 UTC

Financial Health Assessment of DBR CONSULTANCY SERVICES LIMITED

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, primarily due to a drastic reduction in current assets and shareholders' funds over the last financial year. This indicates a weakening liquidity position and erosion of net worth, which are critical warning signs. While still solvent, the company is currently in a fragile state and requires immediate attention to restore financial stability.

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2. Key Vital Signs

Metric	2024 (Latest Year)	2023 (Prior Year)	Interpretation
Current Assets	£2,438	£62,252	Sharp decline suggests liquidity issues; company may struggle to meet short-term obligations.
Shareholders' Funds	£2,138	£52,778	Substantial decrease in net worth; indicates accumulated losses or capital depletion.
Provisions for Liabilities	£0	£12,849	No current provisions, but prior year provisions indicate past contingencies or liabilities that may have been settled or written off.
Accruals and Deferred Income	£300	£625	Small liabilities; relatively stable.
Average Number of Employees	0	0	No employees; possibly sole director-driven consultancy.

Additional Notes:

• The company is classified as a Micro entity, filing under micro-entity provisions, which limits the detail available but still reveals concerning trends.
• No audit requirement, so figures are unaudited but accepted under legal provisions.
• Director Mr. Daniel Bradley holds full control and ownership, concentrating decision-making.

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3. Diagnosis: Financial 'Symptoms' and Underlying Health

• Liquidity Shock: The precipitous drop in current assets from £62,252 to £2,438 in one year is a critical symptom of cash flow distress or asset depletion. The company now has very limited liquid resources to fund day-to-day operations, a sign of "weak pulse" in working capital.

• Net Worth Erosion: The shareholders' funds have similarly plunged from £52,778 to £2,138, indicating the company has likely incurred significant losses or withdrawn capital without replenishment. This "weakening backbone" of the company raises concerns about its solvency if the trend continues.

• No Employees: The business operates without staff, implying low overhead but also potential dependency on the director's capacity and possibly limited business scale or growth.

• Absence of Provisions: The removal of provisions for liabilities suggests either resolution or write-off of prior potential claims, which can be a positive sign but also may mask underlying financial stress if not properly managed.

• Business Model: The company operates in management consultancy, a service sector that often has low capital needs but requires consistent client engagements and cash inflows.

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4. Prognosis: Future Financial Outlook

If current trends persist without intervention, the company risks running into serious liquidity constraints that could lead to insolvency or forced restructuring. The weakened equity base limits its ability to absorb shocks or invest in growth. However, as a micro-entity with minimal fixed costs and a sole director-owner, it may have flexibility to adjust operations quickly.

The prognosis depends heavily on restoring healthy cash flows, either by increasing revenues, reducing expenditures, or injecting capital.

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5. Recommendations: Prescriptions for Financial Wellness

• Immediate Cash Flow Management: Prioritize improving cash inflows. Review client billing and collections processes to accelerate receivables. Consider cost-cutting or deferring non-essential expenses to preserve cash.

• Capital Injection: If possible, inject additional funds (equity or loans) to rebuild working capital and shareholders' funds, strengthening the company's financial resilience.

• Financial Monitoring: Implement regular financial "check-ups" using cash flow forecasts and key performance indicators to detect early warning signs and adjust strategies promptly.

• Business Development: Explore new client acquisition or service diversification to increase revenue streams sustainably.

• Professional Advice: Engage with financial and legal advisors to review company structure, tax efficiency, and compliance to optimize financial health.

• Documentation and Compliance: Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain credibility with stakeholders.

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