DDRAIG LLWYTH LIMITED

Executive Summary

DDRAIG LLWYTH LIMITED exhibits a stable and solvent financial state with strong liquidity and positive equity, indicating healthy financial "vital signs." However, the notable decrease in fixed assets warrants attention to prevent potential operational constraints. Overall, the company is financially sound but should monitor asset management and maintain prudent working capital practices to ensure continued wellness.

DDRAIG LLWYTH LIMITED - Analysis Report

Company Number: 13549643

Analysis Date: 2025-07-20 16:37 UTC

Financial Health Assessment for DDRAIG LLWYTH LIMITED

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1. Financial Health Score: B

Explanation:
DDRAIG LLWYTH LIMITED demonstrates a generally sound financial position with positive net assets and increasing working capital, reflecting a stable and solvent position. However, there are some signs of asset reduction and provisions that suggest caution. The company’s small scale (micro-entity) and limited employee base mean performance metrics must be interpreted in a modest context.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£210	Significant decrease from £967 in 2023; may indicate asset sales or depreciation (possible symptom of downsizing).
Current Assets	£2,155	Increased from £1,007, showing improved short-term resource availability (healthy cash flow indicator).
Current Liabilities	£357	Increased from £187, indicating slightly higher short-term obligations but manageable given asset levels.
Net Current Assets	£1,798	Nearly doubled from £843, showing stronger liquidity and ability to cover immediate debts (positive sign).
Total Net Assets	£1,968	Increased from £1,626; maintaining positive equity is a good signal of overall financial health.
Provisions for Liabilities	£40	Reduced from £184, indicating fewer anticipated future costs or risks, improving financial stability.
Employee Count	1	Very small workforce consistent with micro-entity status; operational scale is minimal.

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3. Diagnosis

The company is on a stable financial footing with a healthy cash flow profile indicated by strong net current assets relative to current liabilities. The increase in current assets suggests improved liquidity, possibly through increased cash or receivables.

However, the sharp decline in fixed assets from £967 to £210 is a symptom worth monitoring. This could reflect asset disposals or depreciation, which might affect long-term operational capacity if assets are essential to business activity in performing arts.

Provisions for liabilities have decreased significantly, which is a positive symptom indicating lower expected future costs or contingencies.

With equity (shareholders’ funds) increasing, the business retains a solid capital base, reducing risk of insolvency. The micro-entity scale and a single employee limit operational complexity but also suggest reliance on limited human resources.

Overall, there are no immediate symptoms of financial distress. The company appears solvent, liquid, and maintaining positive reserves, akin to a patient showing good vital signs but requiring monitoring of asset changes to prevent future strain.

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4. Recommendations

• Investigate Fixed Asset Reduction: Review the reasons behind the decline in fixed assets. If due to disposals, ensure replacements or investments are planned to maintain operational capacity. If depreciation is the cause, assess the need for asset renewal.

• Maintain Strong Liquidity: Continue to manage working capital prudently to keep the robust net current assets position, ensuring the company can meet short-term obligations without stress.

• Monitor Provisions: Keep a close eye on provisions for liabilities to ensure potential future costs do not escalate unexpectedly.

• Plan for Growth or Stability: Given the small size and limited workforce, consider strategic plans for scaling operations or consolidating current activities to enhance financial resilience.

• Regular Financial Reviews: Schedule periodic financial health checks to detect early signs of distress, especially focusing on cash flow trends and asset management.

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