DONE THAT LTD

Executive Summary

DONE THAT LTD demonstrates stable financial health with positive net assets and modest but improving liquidity, reflecting careful management in its early years. While current liabilities have increased, the company maintains a sufficient short-term asset base to meet obligations, indicating no immediate financial distress. To enhance resilience, the company should focus on strengthening its liquidity buffer and managing short-term liabilities prudently.

DONE THAT LTD - Analysis Report

Company Number: 13763948

Analysis Date: 2025-07-29 16:05 UTC

Financial Health Assessment for DONE THAT LTD (Year ending 30 November 2024)

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1. Financial Health Score: B

Explanation:
DONE THAT LTD displays a generally stable financial position with positive net assets and improving net current assets, suggesting a "healthy pulse" in working capital management. However, the relatively small margin between current assets and current liabilities, and modest fixed asset base, reflect cautious growth and a need for vigilance against liquidity stress. The company’s score is a solid B, indicating overall sound health but with some "symptoms" warranting proactive management.

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2. Key Vital Signs (Critical Metrics and Interpretation)

Metric	2024 Value (£)	Interpretation
Fixed Assets	14,662	Modest long-term investment—steady but limited scale
Current Assets	46,348	Healthy increase (+85%) from prior year, good liquidity
Current Liabilities	43,805	Increased (+77%) but closely matched by current assets
Net Current Assets	2,543	Positive working capital—"heartbeat" of liquidity
Net Assets / Shareholders Funds	17,205	Positive equity base, increased from £13,727 last year
Employee Count	2	Small team size typical for micro-entity category
Account Category	Micro	Simplified reporting, small scale operation
Industry	Support activities to performing arts	Sector prone to variable cash flow, reliant on contracts

Interpretation:

• Liquidity: The company’s current assets exceed current liabilities by a modest £2,543, indicating it can meet short-term obligations but with limited buffer. This "pulse" is stable but somewhat fragile.
• Growth: Current assets nearly doubled, a positive "vital sign" suggesting improved cash or receivables, but liabilities also rose significantly, implying increased operational activity or short-term borrowing.
• Solvency: Net assets increased by nearly 25%, signaling retained earnings or fresh capital input, a strong indicator of solvency and financial "strength."
• Size and Structure: As a micro-entity with only two employees, DONE THAT LTD is small but appears well-managed financially within its scale.

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3. Diagnosis: Financial Condition Assessment

DONE THAT LTD’s financial "health check" reveals a company with a stable but cautious financial profile typical of a young, micro-sized private limited company in the service sector. The positive net assets and improved net current assets suggest no immediate signs of distress or cash flow blockage. The company maintains a "steady heart rate" in liquidity—able to cover short-term debts but with limited excess cushion.

The increase in current liabilities alongside current assets could be a symptom of growing business activity financed through short-term credit or supplier terms. This requires careful monitoring to prevent liquidity strain. The fixed asset base remains modest and stable, indicating limited capital expenditure but sufficient for operational needs.

Directors and people with significant control have maintained consistent ownership and management since incorporation, which is a positive sign of stable governance and strategic direction.

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4. Recommendations: Actions to Improve Financial Wellness

• Strengthen Liquidity Buffer: Aim to increase net current assets by accelerating debtor collections or managing payables more efficiently. Target a current ratio comfortably above 1.2 to reduce risk of cash flow "arrhythmia."
• Manage Short-Term Liabilities: Review creditor terms and seek to extend payment periods where possible to ease short-term cash demands. Avoid over-reliance on short-term borrowing that could stress liquidity.
• Plan for Capital Investment: Consider gradual investment in fixed assets to support growth, but balance against cash availability to maintain financial stability.
• Financial Forecasting: Implement rolling cash flow forecasts to anticipate peaks and troughs, especially given the sector’s variability, to avoid liquidity crises.
• Retain Earnings: Continue building retained profits to bolster shareholders’ funds, providing a financial "immune system" against downturns.
• Maintain Governance and Compliance: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with regulators.

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