DEUCE XR LIMITED
Executive Summary
DEUCE XR LIMITED is currently in a dormant but financially stable state, with net assets equal to its share capital and no liabilities or trading activity. The company shows strong compliance and governance foundations but lacks operational financial data to assess full health. To improve its financial wellness, the company should commence trading activities and implement robust financial monitoring and governance structures.
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This analysis is opinion only and should not be interpreted as financial advice.
DEUCE XR LIMITED - Analysis Report
Financial Health Assessment for DEUCE XR LIMITED
1. Financial Health Score: Grade B
Explanation:
DEUCE XR LIMITED is a newly incorporated private limited company classified as dormant, with minimal financial activity. The company’s net assets equal its share capital (£10,000), indicating a clean and straightforward financial position without liabilities or operational losses. While this reflects a stable "resting state," the dormancy means the company has not yet demonstrated active business operations or generated revenues, which limits the depth of financial vitality assessment. Given it is early-stage with no signs of distress, the financial health is solid but untested—hence a B grade.
2. Key Vital Signs
Metric | Value | Interpretation |
---|---|---|
Company Status | Active | Operating but dormant (no financial transactions) |
Account Category | Dormant | No trading activity during the financial year |
Net Assets | £10,000 | Equal to share capital; no liabilities |
Shareholders Funds | £10,000 | Fully funded by initial shareholder investment |
Filing Status | Up-to-date | Accounts and returns filed on time |
Directors | 2 | Both active, control split 25-50% shares/votes |
SIC Code | 62011 | Ready-made interactive leisure software development |
Interpretation:
- Net Assets and Shareholders Funds: Healthy "capital base" with no debts or accumulated losses—a positive sign akin to a patient with normal vital signs and no evident symptoms of disease.
- Dormant Status: Indicates the company is "at rest" financially, with no active trading, so cash flow and profitability cannot be assessed yet.
- Filing Compliance: No overdue filings or penalties; this reflects good governance and regulatory "health."
- Governance: Directors have clear roles and share control, which supports effective management oversight.
3. Diagnosis
The company is financially stable but inactive. With a clean balance sheet showing £10,000 in share capital and no liabilities, the "vital signs" reveal no financial distress or operational strain. However, the dormancy indicates no trading revenues, expenses, or cash flow activity, akin to a patient in a resting state with no symptoms but also no exercise to test fitness. The company is effectively in a pre-operational phase or a holding pattern, awaiting initiation of business activities.
The split ownership among two directors with equal voting control suggests balanced governance but could lead to decision-making challenges if consensus is not maintained. The SIC classification points towards a focus on software development for interactive leisure, a sector with potential growth but requiring investment and operational activity to generate financial health.
4. Recommendations
Activate Trading Operations: To move from dormancy to active status, initiate business activities in line with the company's software development focus. This will introduce income streams and enable financial performance metrics like profitability and cash flow to be evaluated, providing a clearer "health check."
Capital Injection & Expense Planning: If planning to commence operations, ensure adequate working capital is available to cover initial costs. Monitor cash flow closely to maintain liquidity—akin to ensuring the patient has sufficient energy reserves to sustain activity.
Governance and Decision-Making: With split control among directors, establish clear decision-making protocols to avoid "governance arrhythmia" that could disrupt business progress.
Regular Financial Monitoring: Once active, implement periodic financial reviews focusing on key metrics such as liquidity ratios, profitability, and operational cash flows to detect early "symptoms" of financial stress or opportunity.
Compliance Vigilance: Continue timely filing of statutory accounts and confirmation statements to maintain regulatory compliance and company "well-being."
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