Company Number: 13158831

Analysis Date: 2025-07-29 20:52 UTC

Financial Health Assessment for DL ACCOUNTANTS AND AUDIT LTD (as of 31 January 2024)

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1. Financial Health Score: C

Explanation:
DL Accountants and Audit Ltd shows signs of a young company with stable but limited financial resources. The micro-entity status and low asset base indicate an early-stage business with modest operations. While not in distress, the company has minimal financial buffer and limited growth capital, warranting a cautious rating. The score "C" reflects a stable but vulnerable financial condition — neither strong nor weak.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Net Current Assets	188	Positive, indicating working capital is sufficient to cover short-term liabilities, though very modest.
Current Assets	348	Mainly cash or equivalents, showing liquidity but at a low level.
Current Liabilities	160	Short-term obligations are low, reducing immediate financial risk.
Net Assets (Shareholders’ Funds)	188	Very small equity base, reflecting limited retained earnings or capital injection.
Average Number of Employees	1	Minimal staffing, consistent with micro-entity scale and low overheads.
Account Category	Micro	Simplified reporting but limited scale of operations and financial resources.
Filing Status	All current	Good compliance, no overdue filings signals responsible governance.

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3. Diagnosis

DL Accountants and Audit Ltd presents the “vital signs” of a micro-entity starting its business journey. The balance sheet shows a "healthy cash flow" symptom in that current assets exceed current liabilities, but only marginally. The company’s financial structure is very lean with minimal equity (£188), indicative of limited capital reserves or profits retained in the business.

The company is not burdened with significant debt, which is a positive sign. The increase in current assets from £100 to £348 year over year suggests some growth in liquidity, although the absolute amounts remain small. The presence of one employee shows initial operational activity.

However, the financial “symptoms” also reveal a lack of scale and financial depth which could constrain the company’s ability to invest, absorb shocks, or expand operations. The absence of detailed profit and loss figures limits insight into profitability but the micro-entity exemption from audit and simplified accounts imply a straightforward, low-risk business model.

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4. Recommendations

• Build Capital Reserves: Aim to increase net assets gradually through retained earnings or capital injections to provide a stronger financial cushion.
• Enhance Cash Flow Management: Maintain or grow current assets relative to liabilities to safeguard liquidity, especially given the small margin currently.
• Monitor Operational Efficiency: With only one employee, ensure the business model scales sustainably without overextending resources.
• Prepare for Growth: Consider strategic investments or partnerships to increase turnover beyond micro-entity thresholds, enabling more comprehensive financial reporting and access to funding.
• Maintain Compliance: Continue timely filings to avoid penalties and maintain stakeholder confidence.
• Profitability Focus: Although not reported here, ensure the company generates profits or positive cash flows to strengthen financial health.

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