DHRU AND GI LTD

Executive Summary

Dhru and Gi Ltd shows a healthy financial condition with strong net assets and a significant turnaround in liquidity, reflecting improved cash flow management. While long-term liabilities remain sizeable, the overall financial foundation is sound, supported by substantial fixed assets. Continued focus on working capital management and debt reduction will help sustain and improve financial wellness.

DHRU AND GI LTD - Analysis Report

Company Number: 12801691

Analysis Date: 2025-07-20 16:29 UTC

Financial Health Assessment of Dhru and Gi Ltd

---

1. Financial Health Score: B

Explanation:
Dhru and Gi Ltd exhibits a solid financial foundation with strong net assets and an improving working capital position. The company’s financial health is generally good, reflecting a stable balance sheet with significant fixed assets and growing equity. However, some caution is warranted due to current liabilities exceeding current assets in prior years, indicating past liquidity pressure ("symptoms of distress"). The recent positive turnaround in net current assets suggests improving cash flow management, but ongoing monitoring is advisable.

---

2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Fixed Assets	£1,126,164	Indicates substantial investment in long-term property or equipment ("core infrastructure").
Current Assets	£139,969	Improved from £7,290 in 2023, showing enhanced short-term liquidity ("healthy cash flow").
Current Liabilities	£310,981	High short-term debts, though reduced from prior year, still a liquidity challenge.
Net Current Assets (Working Capital)	£130,519	Positive and significantly improved from negative in 2023, a key sign of operational liquidity recovery.
Net Assets (Equity)	£939,287	Growing equity base reflects retained earnings and asset appreciation, signifying financial strength.
Share Capital	£200	Minimal capital invested; indicates company relies on asset backing rather than capital injection.
Employee Count	1	Micro-entity scale with low overheads, simplifying cost structure.

---

3. Diagnosis

• Balance Sheet Strength: The company’s large fixed asset base (likely property or real estate given SIC code 68209) forms the backbone of its financial health. The significant increase in net assets from £780k in 2023 to £939k in 2024 signals accrued value or retained profits.

• Liquidity Condition: Earlier years showed a "symptom of distress" with negative net current assets, meaning the company struggled to meet short-term obligations from current assets. The 2024 turnaround to positive net current assets of £130k reflects better cash and receivable management, improving the company’s short-term solvency.

• Leverage and Debt: The company carries substantial long-term liabilities (~£311k), but these appear manageable relative to the asset base and equity. The gradual reduction in long-term creditors is a positive sign.

• Profitability and Cash Flow: While profit and loss data is unavailable, the increase in shareholders’ funds and net assets implies retained profits and improved operational results. The low employee count and micro-entity status suggest a lean operation with limited overheads.

• Governance: The single director, who is also the sole significant controller, suggests centralized control and decision-making. The director’s professional background is outside property, implying reliance on external expertise may be beneficial for operational management.

---

4. Recommendations

• Maintain Positive Working Capital: Continue to monitor and improve liquidity ratios. Consider negotiating better payment terms with creditors or accelerating receivables to sustain the recent positive working capital trend.

• Review Debt Structure: Assess opportunities to refinance or reduce long-term liabilities to lower financial risk and interest expenses, improving net asset stability.

• Enhance Cash Flow Forecasting: Implement detailed cash flow forecasting to anticipate future liquidity needs and avoid any resurgence of short-term funding gaps.

• Leverage Asset Base: Explore opportunities to optimize the fixed asset portfolio—whether through revaluation, sale and leaseback, or enhanced utilization—to generate additional cash or improve returns.

• Operational Oversight: Given the single-director structure, consider appointing a financial advisor or part-time CFO to strengthen financial controls and strategic planning.

• Compliance and Reporting: Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance and avoid penalties.

---