DK ROBOTICS LTD
Executive Summary
DK ROBOTICS LTD is a financially healthy micro-entity showing strong initial stability with positive working capital and equity. As a newly incorporated engineering company with a small scale, it demonstrates no immediate financial distress but should focus on cash flow management and strategic growth planning to sustain and enhance financial wellness. Continued prudent financial management will support its path to long-term viability and success.
View Full Analysis Report →Company Analysis
This analysis is opinion only and should not be interpreted as financial advice.
DK ROBOTICS LTD - Analysis Report
Financial Health Assessment Report for DK ROBOTICS LTD
1. Financial Health Score: B
Explanation:
DK ROBOTICS LTD shows a solid start for a micro entity newly incorporated in 2023. The company demonstrates positive net current assets and shareholders' funds, indicating a stable financial footing. However, as a young business with limited financial data and a single employee, there is limited operational history to fully assess sustainability and growth potential. The score 'B' reflects a generally healthy financial position with room for improvement as the company matures.
2. Key Vital Signs
Metric | Value (£) | Interpretation |
---|---|---|
Fixed Assets | 6,819 | Investment in long-term assets shows some capital expenditure, indicating asset base development. |
Current Assets | 9,832 | Includes cash, receivables, and stock – healthy short-term resources to cover liabilities. |
Current Liabilities | 8,143 | Debts due within one year; manageable relative to current assets. |
Net Current Assets | 1,689 | Positive working capital indicates good short-term liquidity ("healthy cash flow"). |
Total Assets Less Current Liabilities | 8,508 | Reflects net assets available after settling short-term debts, showing a positive equity base. |
Shareholders’ Funds | 8,508 | Equity attributable to the owner, confirming capital infusion or profit retention since inception. |
Average Number of Employees | 1 | Very small operational scale, typical for micro-entities starting up. |
Interpretation:
- Positive net current assets suggest the company can meet its short-term obligations without liquidity stress.
- The modest fixed asset base aligns with the company's early stage, implying investment in equipment or technology but not excessive capital tie-up.
- Shareholders’ funds equal net assets, showing no long-term liabilities or accumulated losses: a healthy sign of financial stability.
3. Diagnosis
DK ROBOTICS LTD exhibits the vital signs of a financially stable micro-entity in its infancy. The "symptoms" — positive net current assets, no overdue filings, and a clean balance sheet — suggest no immediate financial distress or liquidity issues. The company’s one-person workforce and modest asset base are typical for a start-up engineering firm.
However, limited operational history and scale mean that the company is in a delicate phase: while currently financially "healthy," it must carefully manage cash flow and growth to avoid "symptoms of distress" such as cash shortages or over-leverage as it expands.
The director-owner controls the company fully, which simplifies decision-making but also concentrates financial risk and responsibility.
4. Recommendations
To maintain and improve financial wellness, DK ROBOTICS LTD should consider:
- Cash Flow Management: Maintain a "healthy cash flow" cycle by closely monitoring receivables and payables to ensure liquidity remains positive as business activity grows.
- Growth Planning: Develop a clear business plan to scale operations sustainably, potentially increasing workforce and capital investment without overstretching resources.
- Financial Reporting: Ensure timely and accurate filings continue to avoid penalties and maintain good standing with regulators.
- Capital Structure: As the business grows, evaluate options for external funding or reinvestment to support expansion while managing financial risk.
- Risk Management: Establish simple but robust financial controls and forecasting to catch early "symptoms" of financial stress.
- Professional Advice: Engage with accountants or financial advisors periodically to review financial strategy and compliance.
More Company Information
Recently Viewed
Follow Company
- Receive an alert email on changes to financial status
- Early indications of liquidity problems
- Warns when company reporting is overdue
- Free service, no spam emails Follow this company