DUNHAM LAWN LIMITED
Company number 00955674 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment: DUNHAM LAWN LIMITED
1. Financial Health Score: B+
Explanation: DUNHAM LAWN LIMITED presents as a financially stable residents' property management company with strong liquidity, growing reserves, and modest liabilities. The significant improvement in 2024 is encouraging, though the historical pattern of balance sheet volatility and the limited disclosure of micro-entity accounts means some underlying conditions remain undiagnosed. The company is in good financial health, but not without minor symptoms that warrant monitoring.
2. Key Vital Signs
| Vital Sign | 2024 | 2023 | Interpretation |
|---|---|---|---|
| Total Assets | £82,736 | £49,332 | Strong pulse – assets have grown 67.8% year-on-year |
| Total Liabilities | £8,462 | £5,087 | Manageable – liabilities are modest relative to assets |
| Net Assets | £74,274 | £44,245 | Healthy reserves – significant strengthening |
| Current Assets | £62,490 | £29,086 | Cash flow surge – more than doubled |
| Net Current Assets | £54,028 | £23,999 | Excellent working capital position |
| Current Ratio | 7.4:1 | 5.7:1 | Very strong – ample coverage of short-term obligations |
| Employees | 2 | 2 | Lean operation – typical for this type of entity |
Historical Trend (Net Assets)
2024: £74,274 ████████████████████████████████ (+67.8%)
2023: £44,245 ██████████████████
2022: £32,757 █████████████
2021: £44,385 ██████████████████
2020: £42,754 █████████████████
2019: £38,334 ███████████████
2018: £44,845 ██████████████████
2017: £51,432 █████████████████████
2016: £51,173 █████████████████████
2015: £34,011 █████████████
3. Diagnosis
What the Financial Data Reveals
Healthy Symptoms:
🔹 Strong Liquidity Position – The current ratio of 7.4:1 indicates the company can comfortably meet all short-term obligations nearly seven times over. This is the financial equivalent of having excellent lung capacity – the business can breathe easily.
🔹 Growing Reserve Fund – Net assets have grown from £44,245 to £74,274, a £30,029 increase. For a residents' property management company, building reserves is prudent and indicates forward planning for future maintenance obligations.
🔹 Low Leverage – Total liabilities of only £8,462 against total assets of £82,736 means liabilities represent just 10.2% of total assets. The company is not over-reliant on debt – a very healthy cardiovascular profile.
🔹 Consistent Positive Net Assets – The company has maintained positive net assets throughout the entire 10-year history reviewed, never falling into negative equity territory. This shows resilience through economic cycles.
Symptoms Requiring Monitoring:
⚠️ Balance Sheet Volatility – Net assets have fluctuated significantly: dropping from £51,432 (2017) to £32,757 (2022), then surging to £74,274 (2024). For a residents' management company, this pattern typically reflects the timing of service charge collections and major works expenditure. While not necessarily concerning, it indicates lumpy cash flows.
⚠️ Fixed Assets Static – Fixed assets remain unchanged at £20,246 between 2023 and 2024. Under micro-entity accounting, depreciation may not be charged, so this could mask aging assets that may need replacement. This is like a patient who hasn't had a full diagnostic – the condition may be stable, but underlying deterioration could be hidden.
⚠️ Surge in Current Assets – Current assets jumped from £29,086 to £62,490. In a property management context, this likely represents service charges collected in advance. While this shows good cash collection, it also represents an obligation to deliver services to residents. The "income" is not truly earned until the services are provided.
⚠️ Limited Disclosure – As a micro-entity, the company files minimal accounts. There is no profit & loss account, no detailed breakdown of creditors, and no cash flow statement. This is the financial equivalent of a patient who only allows basic observations – a full diagnosis requires more information.
Understanding the Business Context:
As SIC Code 98000 (Residents Property Management), this company exists to manage communal areas and services for a residential development. The financial dynamics are fundamentally different from a trading business:
- Service charges collected are held on trust for residents and should be used for their benefit
- Reserves are built up for cyclical maintenance (decorating, roof repairs, etc.)
- The £16 share capital with multiple PSCs having significant influence is typical – each flat owner typically holds one share
4. Recommendations
To Improve Financial Wellness
1. Consider Voluntary Enhanced Disclosure Even as a micro-entity, the directors could choose to file fuller accounts. This would provide stakeholders (residents, prospective purchasers) with greater transparency about service charge funds and how they are being managed. Think of it as opting for a more thorough health screening when a basic check-up shows everything is broadly fine.
2. Formalise a Reserve Strategy Given the balance sheet volatility, establishing a clear, documented reserves policy would: - Give residents confidence that funds are being managed prudently - Provide a framework for service charge setting - Ensure adequate provision for major works cycles - Reduce the risk of large, unexpected demands on residents
3. Review Fixed Asset Accounting The static fixed asset figure suggests either no depreciation is being charged or no new assets are being acquired. Directors should ensure they have a clear policy on asset replacement and that the balance sheet reflects the true condition of assets under management.
4. Cash Management Policy With current assets of £62,490, ensure surplus funds are held in interest-bearing accounts. In the current interest rate environment, this could generate meaningful returns for the benefit of residents.
5. Annual Financial Health Check While the company is clearly in good financial shape, the volatility pattern suggests value in regular financial reviews with professional advisors to ensure service charges are set at appropriate levels and reserves are building in line with planned expenditure.
Prognosis
Outlook: Positive with Seasonal Variations
The financial outlook for DUNHAM LAWN LIMITED is positive. The company has demonstrated: - Strong liquidity and ability to meet obligations - Growing reserves for future maintenance - A 55-year track record of continuous operation - Low financial risk profile
The main area of uncertainty is the timing mismatch between service charge collections and expenditure, which creates the observed balance sheet volatility. This is normal for property management companies but requires careful planning to avoid cash flow pressures when major works fall due.
The company is financially healthy and well-positioned to continue fulfilling its obligations to residents, provided it maintains its prudent approach to reserve building and service charge collection.