DESIGNS BY DKMC LIMITED

Executive Summary

DESIGNS BY DKMC LIMITED is a newly established micro-entity showing positive early signs of financial health with a small but positive equity base and no liabilities. The company appears in a pre-revenue or early trading phase, with good compliance and a healthy cash flow foundation. To strengthen its financial wellness, the business should focus on growing revenues, managing cash flow carefully, and preparing operationally for expansion.

DESIGNS BY DKMC LIMITED - Analysis Report

Company Number: 14959545

Analysis Date: 2025-07-29 14:13 UTC

Financial Health Assessment for DESIGNS BY DKMC LIMITED

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1. Financial Health Score: B-

Explanation:
DESIGNS BY DKMC LIMITED is a very young micro-entity, having been incorporated in mid-2023 and reporting its first financial year ending June 2024. The financial "vital signs" show a modest but positive net asset position and working capital, which is promising for a start-up. However, the absence of any fixed assets, minimal current assets, and no turnover or profit data yet limit the ability to assign a higher grade. The company displays symptoms of a healthy start but is still in an early growth phase, just past the incubation stage.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	1 year	Brand new company, still in launch/early trading phase.
Account Category	Micro	Smallest filing requirements; typically very limited financial activity.
Fixed Assets	£0	No long-term investments or property; typical for new or service-based companies.
Current Assets	£511	Small cash or receivables base; indicates minimal working capital.
Current Liabilities	£24	Very low short-term debts; manageable and low risk of liquidity issues.
Net Current Assets	£487	Positive working capital; a healthy cash flow "heartbeat" for a start-up.
Net Assets (Equity)	£487	Positive equity base; the company is solvent with assets exceeding liabilities.
Employees	0	No staff employed yet; likely owner-operated or in pre-revenue stage.
Shareholder Control	100% by Danielle McGee	Single controlling shareholder and director; streamlined decision-making but concentration risk.
Industry	Retail via mail order / Internet	E-commerce sector; potentially scalable but competitive and reliant on marketing and cash flow.
Filing Status	Up to date	No overdue filings; good compliance, reducing regulatory risk.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Early-Stage Signs:
  The company shows the classic signs of a start-up in its infancy with positive net current assets and no significant liabilities. The net assets of £487, though small, indicate initial capital injection and some working capital buffer.

• Symptoms of Limited Activity:
  The absence of fixed assets and employees suggests the company is likely in a pre-trading or service start-up phase. This is common for online retail businesses starting with minimal infrastructure and outsourcing.

• Liquidity and Solvency:
  The positive net current assets imply the company can meet short-term obligations—there is a “healthy cash flow pulse” at this stage. No long-term debts or provisions reduce financial stress risk.

• Risk Factors:
  The company’s financial data is minimal, so its ability to generate sales and profits remains untested. The single director/shareholder model may pose governance and continuity risks if unforeseen events occur.

• Compliance:
  Timely filing of accounts and confirmation statements shows responsible management and reduces legal or penalty risks.

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4. Recommendations: Steps to Improve Financial Wellness

• Build Revenue Streams:
  Focus on marketing and sales strategies to convert potential customers and generate turnover. Growth in revenues will improve financial "vital signs" such as cash flow and profitability.

• Manage Cash Flow Diligently:
  Maintain discipline in collections and payments to sustain positive working capital. Seek to build a cash reserve to cushion against variability in sales or expenses.

• Consider Asset Investments:
  As the business grows, investing in technology, inventory, or infrastructure could enhance operational capacity and competitive positioning.

• Plan for Staffing Needs:
  Evaluate the need for employees or contractors to support growth, but balance this against cash availability to avoid overextension.

• Governance and Risk Management:
  Although owner-managed, consider establishing advisory support or additional directors over time to diversify expertise and reduce concentration risk.

• Monitor Regulatory Compliance:
  Continue timely filings and maintain accurate accounting records to avoid penalties and support transparent stakeholder relations.

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