Company Number: 12791667

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

Financial Health Assessment Report for DESHON LIMITED

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1. Financial Health Score: C

Explanation:
DESHON LIMITED's financial health is currently marginal. The company maintains positive net current assets and net assets but at low levels, indicating a fragile balance between assets and liabilities. The equity base is minimal (£125), and long-term liabilities are significant relative to total assets. This suggests some strain but not immediate distress. The company is solvent but exhibits symptoms that warrant caution and remedial action to strengthen its financial foundation.

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2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Fixed Assets	£3,250	Represents tangible long-term investment; stable but slightly declining over recent years.
Current Assets	£4,925	Short-term resources are increasing, a positive sign for liquidity.
Current Liabilities	£2,550	Obligations due within one year; stable compared to previous year.
Net Current Assets	£2,375	Positive working capital; indicates ability to meet short-term debts.
Creditors Due After One Year	£5,500	Significant long-term debt burden; consistent over past years.
Net Assets (Shareholders’ Funds)	£125	Very low equity base, showing limited buffer against liabilities.
Share Capital	£10	Nominal capital indicating minimal initial investment.
Employee Count	1	Micro-entity scale; limited staffing reflecting small operational scale.

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3. Diagnosis

The company shows a "symptom of financial fragility" with minimal net assets (£125) despite consistent asset levels. The positive net current assets suggest the company can cover short-term liabilities comfortably, which is akin to a patient showing stable vital signs. However, the significant long-term creditors (£5,500) weigh heavily on the balance sheet, analogous to a chronic condition that requires ongoing management.

The slight decrease in fixed assets and the minimal equity imply that the business has limited capacity to absorb shocks or invest in growth without additional capital infusion or debt restructuring. The company operates within the micro-entity size, with very lean staffing and low capital, indicating a tight operational scale with limited financial resilience.

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4. Recommendations

To improve financial wellness and strengthen DESHON LIMITED’s financial health, consider the following steps:

• Enhance Equity Base:
  Inject additional capital to increase shareholder funds and provide a buffer against liabilities. This is like improving a patient's immunity to withstand future stresses.

• Manage Long-Term Debt:
  Explore restructuring or negotiating terms on the long-term creditors to reduce future financial strain. This reduces the chronic financial burden and improves long-term viability.

• Improve Asset Utilisation:
  Review fixed asset usage and consider whether assets can be optimised or upgraded to support revenue growth, enhancing financial strength.

• Cash Flow Monitoring:
  Maintain a healthy cash flow by closely monitoring receivables and payables. Positive working capital is a good sign, but vigilance is required to prevent liquidity issues.

• Strategic Growth Planning:
  Given the micro scale, plan for measured growth with clear financial forecasting to avoid overextension.

• Regular Financial Review:
  Periodic health checks on financial metrics will help to detect any early warning signs of distress.

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Medical Analogy Summary

DESHON LIMITED currently resembles a patient with stable but fragile vital signs: the heart (working capital) beats steadily but the overall strength (equity) is weak, and there is a persistent chronic condition (long-term debt) that requires management. With proper care—capital infusion and debt management—the company can improve its health and resilience against future financial shocks.

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