DS ACCESS & LIFTING SOLUTIONS LTD
Executive Summary
DS ACCESS & LIFTING SOLUTIONS LTD is currently facing liquidity challenges with negative working capital and minimal equity, signaling financial strain. Immediate focus on cash flow management and capital strengthening is essential to stabilize the company's financial health and support sustainable operations.
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This analysis is opinion only and should not be interpreted as financial advice.
DS ACCESS & LIFTING SOLUTIONS LTD - Analysis Report
Financial Health Assessment for DS ACCESS & LIFTING SOLUTIONS LTD
1. Financial Health Score: D
Explanation:
DS ACCESS & LIFTING SOLUTIONS LTD exhibits signs of financial stress, indicated by increasing current liabilities and negative net current assets in the latest year. The company is a micro-entity with limited resources and no employees, which suggests it operates on a very small scale. While it has some fixed assets, the working capital position has deteriorated sharply, signaling liquidity concerns. The overall financial health is weak and requires attention to avoid worsening distress.
2. Key Vital Signs
Metric | 2024 Value | Interpretation |
---|---|---|
Fixed Assets | £8,000 | Some investment in long-term assets; a positive sign of asset base development. |
Current Assets | £3,571 | Low level of liquid assets available to cover short-term obligations. |
Current Liabilities | £10,380 | Significant short-term debts, nearly three times current assets, indicating liquidity strain. |
Net Current Assets | -£6,809 | Negative working capital; a "symptom of distress" showing inability to cover immediate liabilities. |
Total Assets Less Current Liabilities | £1,191 | Slightly positive but very low net asset position, indicating minimal buffer for creditors. |
Net Assets (Shareholders' Funds) | £1,191 | Equity is minimal, reflecting limited retained earnings or capital; fragile financial condition. |
Average Number of Employees | 0 | No employees suggest limited operations or outsourcing; may impact operational scalability. |
3. Diagnosis
Liquidity and Working Capital:
The company’s liquidity is a concern due to current liabilities far exceeding current assets. Negative net current assets represent a "warning sign" akin to a patient showing early symptoms of organ stress—the business may struggle to meet short-term obligations without raising more capital or generating immediate cash inflows.Asset Base:
The presence of £8,000 in fixed assets is a positive sign, but given the scale, it is insufficient to offset the high current liabilities. The company has grown its fixed assets from zero last year, indicating some investment, but this has not translated into improved liquidity.Equity Position:
The shareholder funds are minimal (£1,191), which means the company has a thin equity cushion. This low "capital health" makes it vulnerable to shocks and less able to absorb losses.Operational Scale:
With zero employees and micro-entity status, the company operates very leanly but may also face challenges scaling or responding to financial stress quickly.Trend Analysis:
Comparing prior years, the company’s net current assets have plunged from positive £2,454 in 2021 to negative £6,809 in 2024. This deterioration over three years is a "progressive symptom" indicating worsening financial health.
4. Recommendations
Improve Liquidity:
- Actively manage working capital by negotiating extended payment terms with suppliers or accelerating receivables collection.
- Consider short-term financing options to bridge cash flow gaps but avoid excessive borrowing that could worsen liquidity.
Cost Control:
- Maintain lean operations, possibly outsourcing tasks to avoid adding employee overheads.
- Review all expense lines to reduce unnecessary costs.
Asset Management:
- Assess whether fixed assets are being optimally utilised to generate revenue or if they can be monetised for cash.
Capital Injection:
- Explore options for additional equity investment or shareholder loans to strengthen the balance sheet.
Financial Monitoring:
- Implement regular cash flow forecasting and financial reviews to detect early signs of distress and respond promptly.
Strategic Review:
- Given the industry niche (specialised construction activities), evaluate market conditions and demand to ensure sustainable revenue streams.
Medical Analogy Summary
DS ACCESS & LIFTING SOLUTIONS LTD shows "symptoms of financial distress," particularly liquidity strain akin to a patient with compromised blood flow—current liabilities overwhelm available liquid assets, threatening operational viability. The company’s "vital signs" indicate weak capital reserves and deteriorating working capital, requiring immediate intervention to restore "financial health" and prevent progression to a more serious "condition" such as insolvency.
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