DJN IC LAYOUT DESIGN LIMITED

Executive Summary

DJN IC LAYOUT DESIGN LIMITED shows strong early financial health with positive net assets and robust working capital for a micro-entity in the engineering consulting sector. The company is solvent, with no signs of distress, operating with minimal fixed assets and no employees yet, which aligns with its startup phase. To sustain and grow, it should focus on cash flow management, incremental investment in capacity, and strategic business development.

DJN IC LAYOUT DESIGN LIMITED - Analysis Report

Company Number: SC778272

Analysis Date: 2025-07-20 12:34 UTC

Financial Health Assessment for DJN IC LAYOUT DESIGN LIMITED
(Period Ending 31 August 2024)

---

1. Financial Health Score: B

Explanation:
The company exhibits a solid foundation with positive net assets and a healthy working capital position relative to its micro-entity size. As a newly incorporated business (established August 2023), the financials show no immediate distress signals. The "B" grade reflects a generally healthy financial state with room for growth and improvement as the company matures and expands operations.

---

2. Key Vital Signs:

Metric	Amount (£)	Interpretation
Fixed Assets	3,957	Modest investment in long-term assets, typical for a start-up.
Current Assets	77,150	Healthy liquidity pool suggesting good short-term financial health.
Current Liabilities	29,098	Manageable short-term obligations.
Net Current Assets	48,052	(Current Assets - Current Liabilities) - Strong working capital.
Shareholders’ Funds	52,009	Positive equity base, indicating the company is solvent.
Employees	0	No staff employed yet, which limits payroll burden but may constrain growth.

Interpretation of Vital Signs:

• Working Capital (Net Current Assets): The company has more than £48k in liquid assets beyond its immediate liabilities, indicating a "healthy cash flow" symptom with ability to fund day-to-day operations without stress.
• Equity Position: Positive shareholders’ funds show the company is not reliant on external debt, which is a good sign of financial stability.
• Asset Base: Fixed assets are minimal but reasonable for a micro company in a technical consulting sector, suggesting limited capital expenditure so far.
• No Employees: Indicates the company may be owner-operated or subcontracting work, which keeps overheads low but may limit capacity.

---

3. Diagnosis:

DJN IC LAYOUT DESIGN LIMITED presents as a financially stable micro-entity in its infancy stage. The balance sheet displays no symptoms of financial distress: liquidity is ample relative to liabilities, and the company is solvent with positive equity. The absence of debt beyond short-term creditors and no staff costs suggest a conservative startup approach. However, limited asset base and no workforce imply the business is at an early growth phase, heavily reliant on its director’s involvement and possibly external partnerships.

The company’s industry classification under SIC 71122 (engineering-related scientific and technical consulting) typically requires expertise and intellectual capital rather than heavy capital investment, aligning well with the current financial profile.

---

4. Recommendations:

1. Monitor Cash Flow Regularly: Maintain the current positive working capital by managing receivables and payables efficiently. Cash flow is the lifeblood of a young business.
2. Plan for Growth Investment: As the company scales, consider incremental investment in fixed assets or hiring key personnel to increase capacity and client servicing.
3. Establish Financial Controls Early: Even as a micro-company, implementing basic budgeting and forecasting will help anticipate future cash needs and avoid surprise liquidity issues.
4. Build Creditworthiness: Consider maintaining a good relationship with suppliers and possibly secure small lines of credit to enhance flexibility without overleveraging.
5. Strategic Business Development: Focus on securing contracts and developing a client base given the consultancy nature of the business. The financial health is presently stable but depends on future revenue generation.
6. Regular Compliance and Reporting: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

---