D&D PERFECT BUILDING SOLUTIONS LTD

Executive Summary

D&D PERFECT BUILDING SOLUTIONS LTD is facing significant financial distress marked by declining turnover and zero liquidity, threatening its operational viability. Urgent capital support, cost management, and strategic revenue enhancement are required to stabilise and improve the company's financial health.

D&D PERFECT BUILDING SOLUTIONS LTD - Analysis Report

Company Number: 12792265

Analysis Date: 2025-07-20 12:32 UTC

Assessing D&D PERFECT BUILDING SOLUTIONS LTD’s financial health, we adopt a clinical approach akin to a medical diagnosis by examining vital signs, symptoms, overall diagnosis, and prognosis to provide actionable recommendations.

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1. Financial Health Score: D (Fair to Poor)

Explanation:
The company’s financial statements reveal extremely thin margins with no retained earnings, minimal equity (£100), and zero net current assets or working capital. The turnover has sharply declined from £252,689 in 2023 to £49,956 in 2024, indicating distress signals. The lack of cash or liquid assets and zero profit despite recorded turnover suggest operational strain. This positions the company in the lower tier of financial health, warranting close attention and corrective measures.

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2. Key Vital Signs: Critical Metrics and Interpretation

Metric	2024 Value	Interpretation
Turnover	£49,956	Sharp decline (80%) from previous year (£252,689); “symptom” of reduced business activity or lost contracts.
Profit (Loss) for period	£0	No reported profit or loss; potential breakeven but considering cost structure, may indicate underreporting or break-even at best.
Cost of Materials	£32,650	High proportion (~65%) of turnover, reducing profit margin.
Staff Costs	£12,570	Significant expense relative to turnover (~25%).
Other Charges	£4,736	Additional operating expenses impacting net income.
Current Assets	£0	No short-term assets (e.g., cash, receivables); indicates poor liquidity.
Net Current Assets	£0	No working capital buffer; company may struggle to meet short-term liabilities.
Net Assets / Equity	£100	Minimal shareholder funds; company "thin-blooded" financially.
Share Capital	£100	Nominal capital only; no significant capital injection.
Number of Employees	1 (average)	Very small operational scale; limits economies of scale.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity Crisis (Healthy Cash Flow Deficiency):
  Absence of current assets means no cash or receivables to cover immediate expenses or liabilities. This is akin to a patient with no vital fluids to sustain life—risk of insolvency if this persists.

• Revenue Decline (Symptom of Market Stress):
  The 80% drop in turnover from 2023 to 2024 is alarming. Possible causes include loss of contracts, reduced market demand, or competitive pressures. This symptom suggests the business’s core operations are under severe strain.

• Thin Equity and Capital Structure (Weak Immune System):
  With only £100 equity and no retained earnings, the company lacks financial cushion against shocks. This fragile capital base impairs the ability to invest or absorb losses.

• Break-even Profitability (No Visible Health Gains):
  Although the company reports zero profit or loss, the high cost base relative to turnover indicates tight margins. The results could mask underlying cash flow problems or deferred expenses.

• Small Scale Operations (Limited Resilience):
  Operating with one employee and micro-entity status limits growth potential and bargaining power. The company resembles a patient with limited reserves and a fragile constitution.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Inject Capital or Secure Financing:
  Immediate action to improve liquidity by injecting capital or arranging overdraft/credit lines. This is like administering IV fluids to stabilize the patient.

• Cost Rationalization and Efficiency Improvement:
  Review cost structure focusing on reducing material costs and overheads. Negotiate better supplier terms or consider alternative sourcing.

• Revenue Recovery Strategy:
  Conduct market analysis to identify lost opportunities and rebuild client base. Marketing efforts or diversification may help restore turnover.

• Cash Flow Management:
  Implement strict cash flow forecasting and working capital management to avoid liquidity crunches. Prioritize timely invoicing and debt collection.

• Explore Strategic Partnerships or Mergers:
  To strengthen operational scale and financial base, consider alliances or mergers that can provide stability and resources.

• Regular Financial Monitoring:
  Establish monthly financial review protocols to detect early warning signs and adjust strategies promptly.

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Executive Summary

D&D PERFECT BUILDING SOLUTIONS LTD shows critical signs of financial distress, highlighted by a sharp revenue drop, zero liquidity, and minimal equity. Without intervention, the company risks insolvency due to poor cash flow and lack of financial cushion. Immediate capital infusion, cost control, and revenue recovery are essential to restore its financial health and ensure sustainability.