DESIGNER COMPOSITE DOOR FACTORY LIMITED

Executive Summary

DESIGNER COMPOSITE DOOR FACTORY LIMITED exhibits a sound financial position with positive cash flow, working capital, and profitability, signaling a stable and growing business. While the company is small and early-stage, it is managing its resources prudently without signs of distress. Strategic focus on strengthening capital and scaling operations will enhance its financial wellness moving forward.

DESIGNER COMPOSITE DOOR FACTORY LIMITED - Analysis Report

Company Number: 12833752

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

Financial Health Assessment Report for DESIGNER COMPOSITE DOOR FACTORY LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable and positive financial position with a modest but healthy cash reserve and positive working capital. It is relatively young (incorporated in 2020) but has shown growth in net assets and retained earnings. The absence of debt beyond current liabilities and positive equity indicates financial soundness. However, the scale of operations is small with limited capital, so there remains room for improvement in liquidity management and capital structure.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Cash at Bank	£20,528	Healthy cash balance for a small company; indicates good short-term liquidity ("healthy pulse").
Current Liabilities	£13,610	Manageable current obligations; company can cover these with its cash and assets.
Net Current Assets	£6,918	Positive working capital ("stable blood pressure") reflecting ability to meet short-term debts.
Shareholders' Funds	£6,918	Positive equity base; company retains earnings and funds growth internally.
Share Capital	£1	Nominal share capital, typical for small private companies; capital structure is equity-heavy.
Profit for the Year	£7,417	Operating profit retained after dividends shows underlying profitability ("healthy metabolism").
Dividends Paid	£500	Small dividend payout indicating some return to shareholders while preserving capital.
Number of Employees	~3	Small team size; manageable operational overhead but limited scale.

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3. Diagnosis

The company is showing clear signs of financial health—a "fit and stable" profile for a small manufacturing business. The positive net current assets and cash balance suggest no immediate liquidity distress or cash flow issues. Retained earnings are growing, indicating profitable operations and prudent management of earnings. The business appears to be in an early growth phase, with steady accumulation of shareholder equity.

There are no indications of financial "symptoms" such as over-leverage, negative working capital, or cash shortages that would suggest distress. The company is not burdened by long-term debt or external liabilities, which reduces financial risk.

However, the company’s very small size and minimal fixed assets suggest it is still building its operational capacity. The low share capital means financial resilience depends heavily on operational cash flow and earnings retention. The company should monitor growth carefully as scale and complexity increase.

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4. Recommendations

• Maintain Healthy Liquidity: Continue to monitor cash flow closely to maintain a buffer of cash and net current assets, especially as the business grows.
• Strengthen Capital Structure: Consider increasing share capital or reserves to enhance financial resilience and support expansion.
• Build Fixed Assets Strategically: Invest in necessary equipment or property to improve production capacity and long-term value.
• Control Overheads: Keep employee numbers and overhead costs aligned with revenue growth to avoid margin pressure.
• Tax and Dividend Planning: Optimize dividend policy and tax planning to balance shareholder returns with reinvestment needs.
• Prepare for Growth: As operations scale, consider more detailed financial planning and possibly external financing to support working capital needs.
• Governance and Reporting: Continue timely filing and transparent reporting to maintain stakeholder confidence.

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