DE BARRA'S LTD

Executive Summary

De Barra's Ltd exhibits a strong and improving financial position with significant growth in net assets and liquidity. The company maintains good working capital and manageable debt levels, supporting its ability to service credit facilities. Continued monitoring of loan repayments and tax liabilities is recommended to maintain credit quality.

DE BARRA'S LTD - Analysis Report

Company Number: 12915329

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion: APPROVE
   De Barra's Ltd demonstrates strong financial health and liquidity, with a significant increase in net assets and working capital over the last year. The company operates in dental practice activities, a sector that generally provides stable cash flows. No adverse status conditions or director disqualifications are noted. The increase in fixed assets and cash balances supports ongoing business investment and operational resilience. The company appears well-positioned to service debt obligations.

2. Financial Strength:
   The balance sheet shows a robust growth trajectory. Net assets increased from £95,940 in 2023 to £261,239 in 2024, largely driven by an increase in cash and fixed assets. The company’s fixed assets rose by approximately 18% to £116,838, indicating investment in plant and machinery. Shareholders’ funds have grown significantly, reflecting retained earnings and profitability. Long-term liabilities (bank loans) have decreased from £146,088 to £113,092, improving gearing ratios.

3. Cash Flow Assessment:
   Current assets total £413,355 with cash representing the majority (£398,355), indicating excellent liquidity. Net current assets stand at £257,493, showing strong working capital management. The increase in cash and reduction in short-term liabilities relative to prior year highlight effective cash flow management. The company’s ability to cover current liabilities nearly 2.65 times (current assets/current liabilities) signals low short-term liquidity risk.

4. Monitoring Points:

• Monitor repayment progress of long-term bank loans (£113,092) to ensure continued reduction in leverage.
• Track corporation tax obligations (£61,725 current liability) and ensure timely settlement.
• Observe any significant fluctuations in cash balances or trade creditors, which may indicate operational stress.
• Review turnover and profitability trends in subsequent accounts to confirm sustained growth.
• Keep watch on director’s loan account movements (£19,453) for related party transactions and possible liquidity impacts.