DIVRSE TECHNOLOGIES LTD

Executive Summary

DIVRSE TECHNOLOGIES LTD shows a stable and improving financial profile for a young micro-entity, with strong liquidity and growing equity. The company’s financial health is good, reflecting sound short-term solvency and cautious asset management. To sustain and enhance this positive trajectory, attention to governance, strategic investment, and financial controls is recommended.

DIVRSE TECHNOLOGIES LTD - Analysis Report

Company Number: 14094464

Analysis Date: 2025-07-20 13:49 UTC

Financial Health Assessment: DIVRSE TECHNOLOGIES LTD

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1. Financial Health Score: B

Explanation:
DIVRSE TECHNOLOGIES LTD exhibits solid financial footing for a young micro-entity. The company demonstrates a healthy net asset base, improving working capital, and positive shareholder funds growth. However, the small scale of operations and modest fixed assets limit the potential for immediate expansion and resilience against unexpected shocks, warranting a "B" grade rather than an "A." The score reflects a stable, growing business with room to build robustness.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	4,302	6,807	Slight decrease indicates limited capital investment or asset disposal; typical for early stage.
Current Assets	37,816	22,598	Healthy increase, reflecting stronger liquidity and operational cash or receivables.
Current Liabilities	5,109	7,290	Decline suggests improved short-term debt management and reduced immediate financial obligations.
Net Current Assets (Working Capital)	33,076	15,308	Significant positive net working capital, indicating good short-term financial health ("healthy blood pressure").
Net Assets (Equity)	36,296	20,675	Strong equity growth, showing retained earnings or capital injection ("strength of the heart").
Shareholders Funds	36,296	20,675	Mirrors net assets, confirming equity base growth and financial stability.

Additional Notes:

• The company has one employee, consistent with micro-entity status, which keeps overhead low.
• No audit required, typical for micro companies, but this reduces external verification of accounts.
• The main director holds controlling interest (75-100%), ensuring aligned governance but also concentration risk.

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3. Diagnosis

Current Financial Condition:
DIVRSE TECHNOLOGIES LTD is in a stable and improving financial state, akin to a patient who has recovered from initial operational "teething troubles" and now shows signs of steady vitality. The company’s liquidity is robust, with net current assets more than six times the current liabilities in 2024, indicating excellent short-term solvency and ability to cover debts as they fall due. This "healthy cash flow" environment reduces the risk of distress.

The growth in shareholders’ funds from £20,675 to £36,296 suggests either accumulated profits or capital injections, indicating the business is building its financial "muscle." The reduction in fixed assets may reflect an intentional strategy to keep asset base lean, focusing on IT consultancy activities which are typically less asset-intensive.

Potential Symptoms to Monitor:

• The company is young (incorporated 2022), so long-term sustainability is yet unproven.
• Concentrated control in one director may pose governance risks and limit strategic diversity.
• Absence of external audit means internal controls and financial accuracy depend heavily on director diligence.

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4. Recommendations

To improve financial wellness and ensure ongoing robustness, the company should consider:

• Maintain Positive Working Capital: Continue prudent management of receivables and payables to sustain liquidity ("healthy blood flow").
• Build Asset Base Strategically: Invest selectively in fixed assets or technology that enhances service delivery and competitive advantage.
• Governance Strengthening: Consider broadening leadership input or advisory roles to diversify decision-making and reduce concentration risk.
• Financial Controls & Reporting: Even if not mandatory, consider voluntary audits or independent reviews to enhance financial transparency and stakeholder confidence.
• Plan for Growth: Develop a strategic business plan to leverage current financial strength into sustainable growth, including potential hiring or market expansion.
• Monitor Cash Reserves: Maintain sufficient cash buffers to cushion unexpected downturns or client payment delays.

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