DESIGNER SPACES BUILDING LTD

Executive Summary

Designer Spaces Building Ltd demonstrates a solid financial footing for its first year with positive working capital, strong cash reserves, and no overdue filings, indicating good early-stage financial health. The main area for attention is establishing profitability and sustainable cash flow to ensure long-term viability. Proactive financial monitoring and strategic planning will support continued wellness and growth.

DESIGNER SPACES BUILDING LTD - Analysis Report

Company Number: 14849361

Analysis Date: 2025-07-29 15:13 UTC

Financial Health Assessment for DESIGNER SPACES BUILDING LTD

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1. Financial Health Score: B

Explanation:
DESIGNER SPACES BUILDING LTD shows a generally sound financial position for a newly incorporated company. With a positive net asset base, healthy working capital, and no overdue filings, the company demonstrates good early-stage financial stability. However, as a start-up with no profit and loss data disclosed and relatively modest scale, there remains some uncertainty in longer-term financial viability, warranting a "B" grade rather than "A".

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	24,108	Adequate short-term assets, dominated by cash
Cash	23,931	Healthy cash position, essential for liquidity
Debtors	177	Minimal outstanding receivables, low risk exposure
Current Liabilities	9,922	Manageable short-term obligations
Net Current Assets	14,186	Positive working capital, indicating liquidity
Creditors (Long term)	1,945	Some medium-term obligations, not excessive
Net Assets	12,241	Positive net worth, capital buffer present
Share Capital	100	Minimal issued capital, typical for new company
Retained Earnings	12,141	Indicates accumulated net resources (likely seed capital injection or early profits)

Interpretation of Vital Signs:
The "pulse" of the company—the cash and working capital—is robust, showing a "healthy cash flow" foundation to support ongoing operations. The low level of debt and positive net assets are good "vital signs" indicating no immediate financial distress or solvency risk. However, absence of an Income Statement limits insight into profitability and operational cash generation.

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3. Diagnosis

• Liquidity: The company has a strong liquidity position with net current assets of £14,186 and cash almost equalling current assets, indicating it can comfortably meet short-term obligations—a symptom of financial health.
• Solvency: Positive net assets of £12,241 mean that the company’s total assets exceed liabilities, showing solvency and no signs of financial distress.
• Capital Structure: Equity is predominantly in retained earnings, suggesting initial funding or early profit retention. Share capital is minimal, which is typical for a start-up but could limit borrowing capacity.
• Operating Performance: No income statement available due to small company exemption; thus, profitability and operating cash flow cannot be fully assessed. The absence of employees suggests low operational overhead or a subcontractor model.
• Governance and Compliance: No overdue filings; directors and secretary appointed properly; company is active and not in liquidation or administration, indicating good "corporate health" and compliance.

Underlying Business Health:
The financials show the company is in a stable early-stage condition with adequate funding and liquidity to operate. The "symptoms" suggest no signs of liquidity crunch or distress. However, the lack of profitability data means that the company’s ability to generate sustainable earnings remains untested.

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4. Recommendations

• Profitability Monitoring: Begin detailed tracking and reporting of income and expenses to identify profitability trends early. This will help detect any "symptoms" of operational inefficiency or margin pressure.
• Cash Flow Management: Maintain healthy cash reserves and monitor cash inflows/outflows closely to preserve liquidity, especially important in construction where project payments can be irregular.
• Capital Structure Review: Consider increasing share capital or securing additional funding if business growth requires investment in fixed assets or working capital to avoid over-reliance on short-term creditors.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Strategic Planning: Develop business plans addressing market positioning within the construction sector (specialised activities) to strengthen revenue streams and enhance shareholder value.
• Risk Management: Evaluate any credit risks related to debtors even if currently minimal; construction businesses often face delayed payments.

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Medical Analogy Summary

DESIGNER SPACES BUILDING LTD’s financial "vital signs" indicate a generally healthy start-up with strong liquidity and solvency. The company shows no "symptoms of distress" such as negative working capital or overdue compliance. However, it is still in the "early developmental stage" where close "monitoring" of profitability and cash flow is essential to prevent future financial "ailments."

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