DEDANAN CONSULTING GROUP LTD

Executive Summary

Dedanan Consulting Group Ltd exhibits a solid financial foundation with positive working capital and shareholders’ equity, reflecting healthy liquidity and initial profitability for this early-stage company. While the current financial "vital signs" are positive, the company should focus on prudent cash management and governance diversification to sustain growth and mitigate risks. Regular financial oversight will be key to maintaining this healthy trajectory.

DEDANAN CONSULTING GROUP LTD - Analysis Report

Company Number: 15126665

Analysis Date: 2025-07-29 12:02 UTC

Financial Health Assessment for Dedanan Consulting Group Ltd (As of 30 September 2024)

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1. Financial Health Score: B

Explanation:
Dedanan Consulting Group Ltd demonstrates a sound financial footing with positive working capital and shareholders' funds, indicating a "healthy pulse" in liquidity and equity. The company, however, is in its infancy (incorporated in 2023) and operates with modest asset and liability levels typical of a micro or small enterprise, which leaves it somewhat vulnerable to external shocks or cash flow fluctuations. The absence of an income statement limits a full profitability analysis, but the current data suggests a stable but cautious outlook.

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2. Key Vital Signs

Vital Sign	Value	Interpretation
Current Assets	£41,568	Adequate short-term resources including cash and receivables
Cash and Cash Equivalents	£25,248	Healthy cash reserve supporting liquidity
Debtors (Trade Receivables)	£16,320	Moderate amount tied up in customer payments
Current Liabilities	£27,985	Short-term obligations, largely taxation and social security
Net Current Assets	£13,583	Positive working capital, indicating ability to cover short-term debts
Shareholders’ Funds	£13,583	Equity capital and retained earnings; positive net worth
Number of Employees	1	Very lean operation, low fixed costs
Account Category	Total Exemption Full	Simplified reporting, typical for small companies

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3. Diagnosis

• Liquidity & Cash Flow ("Healthy Cash Flow"): The company’s cash balance of £25,248 comfortably exceeds its current liabilities of £27,985 when combined with debtors, leading to a positive net current asset position of £13,583. This suggests that the company can meet its immediate obligations without distress.

• Capital Structure ("Solid Foundation"): Shareholders’ funds of £13,583, mainly derived from profit and loss reserves, indicate that the company has retained some earnings and is not reliant solely on external debt or capital injections.

• Business Model & Scale ("Early Stage"): With one employee and modest asset size, Dedanan Consulting Group Ltd is clearly in its startup or early growth phase. The financial data shows no signs of distress or over-leverage, but the company's small scale means it may be more sensitive to market fluctuations or delays in receivables collection.

• Compliance & Reporting ("On Track"): The company is compliant with filing deadlines and has made use of the exemption from audit, appropriate for its size. The director has fulfilled statutory responsibilities, and no overdue filings or warnings are noted.

• Risk Factors ("Watchful Eye Needed"): The reliance on one director who also holds significant control (50-75% ownership and voting rights) means governance is concentrated. This is typical for small companies but warrants attention as the company grows.

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4. Recommendations

• Maintain Strong Cash Management: Continue monitoring cash flow carefully to avoid liquidity strain, especially given the relatively small cash buffer. Prompt collection of debtors is essential.

• Build Financial Buffers: As the company grows, aim to increase net current assets and shareholders’ funds to cushion against uncertainties and support investment opportunities.

• Diversify Governance and Skills: Consider adding directors or advisors to broaden oversight and strategic input, which can enhance resilience and reduce operational risks.

• Prepare for Scale: Develop financial projections and budgeting processes to anticipate future working capital needs and investment requirements.

• Regular Financial Review: Even though audit exemption applies, consider periodic internal reviews or external advisory input to maintain financial discipline and identify early signs of stress.

• Risk Management: Monitor tax and social security obligations closely to avoid penalties or cash flow surprises, as these make up the bulk of current liabilities.

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