DRAGOS DLT CONSULTING LTD

Executive Summary

DRAGOS DLT CONSULTING LTD demonstrates excellent financial health with strong liquidity and growing equity, characteristic of a well-managed micro-entity. The company is financially stable and well-positioned for future growth, though monitoring director loans and planning governance continuity are advised. Overall, the business has a solid foundation to build upon in the coming years.

DRAGOS DLT CONSULTING LTD - Analysis Report

Company Number: 13106269

Analysis Date: 2025-07-20 13:29 UTC

Financial Health Assessment of DRAGOS DLT CONSULTING LTD

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1. Financial Health Score: A-

Explanation:
DRAGOS DLT CONSULTING LTD demonstrates strong financial health with growing net assets and excellent working capital. The company shows a very healthy liquidity position and a solid equity base relative to its size category (Micro). While the business is small and owner-managed, its financial "vital signs" suggest stability and sound financial management. Minor caution around director loans is noted but does not currently signal distress.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	4,240	Stable investment in long-term assets, minor but adequate for micro-level business.
Current Assets	209,040	Strong short-term asset base, mainly cash or receivables, indicating good liquidity.
Current Liabilities	74,849	Manageable short-term obligations relative to assets.
Net Current Assets (Working Capital)	221,504	Very healthy liquidity cushion (Current Assets > Current Liabilities by about 3x).
Net Assets (Shareholders’ Funds)	225,744	Significant growth from £56,418 in 2023, indicating retained profits or capital injections.
Share Capital	1.00	Minimal share capital typical for micro-entity; equity mainly from retained earnings.
Director Loans	17,345 owed to directors	Interest-free, repayable on demand; warrants monitoring to avoid cash flow strain.
Employee Count	1 (Director)	Sole operator business, low overhead risk.

Interpretation:

• The company's liquidity is robust, with current assets nearly three times the current liabilities, creating a "healthy cash flow" buffer to meet short-term obligations comfortably.
• Net assets have quadrupled since 2023, a "sign of vitality," reflecting retained earnings or reinvestment into the business.
• Fixed assets remain stable but low, commonplace for a software development firm, which relies more on intellectual property than physical assets.
• The director loans, while interest-free and repayable on demand, represent a "symptom to monitor" as such intra-company advances can affect liquidity if not managed carefully.

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3. Diagnosis

DRAGOS DLT CONSULTING LTD appears financially fit and resilient, reflecting a "healthy heart" in accounting terms with strong liquidity and growing equity. The company’s balance sheet shows no signs of "financial distress" such as negative working capital or shrinking net assets. The increase in current assets, particularly cash or receivables, suggests strong operational cash inflows or successful management of receivables.

The business operates as a micro-entity with minimal employees and low fixed asset investment, typical for a consultancy or software development business model. Its single director and sole shareholder structure means governance and control are concentrated, which can be both a strength (quick decisions) and a risk (dependency on one individual).

The interest-free director loans, while common in small businesses, should be viewed as a "potential liquidity pressure point" if the company needs to repay these sums suddenly. However, given the healthy cash reserves, this risk is currently low.

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4. Recommendations

• Maintain Healthy Cash Flow: Continue monitoring working capital closely to ensure liquidity remains robust, especially as the business grows or if director loans fluctuate.
• Manage Director Loans Prudently: Create a formal repayment plan or convert some advances into equity if appropriate, to reduce the risk of sudden cash demands.
• Plan for Growth: Consider reinvesting some profits into scaling operations, such as hiring additional staff or expanding marketing, to leverage the strong financial base.
• Governance and Succession: Given the sole director/shareholder status, consider documenting succession plans and risk mitigation for dependency on one person.
• Regular Financial Reviews: Keep up-to-date with annual accounts filings and internal financial reviews to catch any early signs of financial strain or changes in business conditions.
• Consider Audit or Review: While exempt from audit, periodic voluntary reviews or audits could enhance stakeholder confidence if external funding or partnerships are sought.

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