DIRECT COOLING SOLUTIONS LTD

Executive Summary

Direct Cooling Solutions Ltd is currently in a dormant phase with minimal financial activity, reflecting its status as a newly incorporated company. While the financial health score is low due to lack of trading data, the company exhibits a stable foundation with sound governance. Moving forward, initiating operations and careful cash flow management will be critical to establishing financial vitality and sustainable growth.

DIRECT COOLING SOLUTIONS LTD - Analysis Report

Company Number: 15313098

Analysis Date: 2025-07-19 12:14 UTC

Financial Health Assessment for Direct Cooling Solutions Ltd

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1. Financial Health Score: D

Explanation:
The company is newly incorporated and classified as dormant for the reported period, reflecting minimal financial activity and very limited assets. The balance sheet shows only £200 in cash and shareholders' funds, with no liabilities or operational income/expenses. This score reflects an early-stage business with no active trading or financial momentum yet, which is typical for a company in its infancy but indicates no current financial vitality.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	Less than 1 year	Newly established; limited operational history, typical for early-stage companies.
Account Category	Dormant	No significant financial transactions; no revenue or expenses recorded.
Cash on Hand	£200	Minimal liquidity; indicates no operational cash flow yet.
Shareholders' Funds (Equity)	£200	Equity investment made; no retained earnings or losses as no trading has occurred.
Employees	0	No staff during the period; suggests no active operations.
Filing Status	Up to date	Compliant with filing requirements; no overdue returns or accounts.
Industry Classification (SIC)	Plumbing, heat & air-conditioning installation; Manufacture of pumps; Manufacture of electronic industrial process control equipment	Indicates technical industrial sector focus with potential for future growth.
Directors	4 active directors	Strong governance presence; includes managing director and general manager roles.

Interpretation:
The company’s "vital signs" show a dormant state with no operational symptoms such as revenue, expenses, or assets beyond initial capital. The balance sheet is essentially a snapshot of seed capital invested but no business activity. The lack of employees and minimal cash flow indicates the business is in the incubation phase.

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3. Diagnosis

The financial "symptoms" are consistent with a start-up company that has not yet commenced trading or significant business operations. The absence of revenue, expenses, and working capital movement means there is no evidence of operational cash flow or profitability at this stage. This dormancy is not a sign of distress but rather a baseline state typical for newly formed companies preparing to launch.

Strong governance with multiple directors and a clear industry focus suggests readiness to activate the business. The company’s balance sheet is stable but static, showing no liabilities or financial obligations—akin to a patient at rest awaiting treatment.

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4. Recommendations

To improve financial wellness and move from dormancy to active, healthy operation, the company should consider the following steps:

• Initiate trading activity: Begin commercial operations to generate revenue and establish cash flow. Early sales will provide ‘healthy circulation’ for the business finances.
• Monitor cash flow carefully: With minimal initial cash, preserving liquidity is vital. Plan expenditures and investments to avoid cash flow ‘blockages’.
• Build working capital: Acquire assets and manage liabilities prudently to develop net current assets, supporting operational resilience.
• Prepare for growth: As the company activates, implement financial controls and forecasting to track progress and identify early symptoms of distress.
• Engage with professional advisors: To ensure compliance, tax planning, and financial reporting are on track as the business scales.
• Leverage industry expertise: Use the directors’ experience and network to secure contracts and partnerships in the industrial cooling and manufacturing sectors.

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