DUO SOUND RESEARCH LTD

Executive Summary

DUO SOUND RESEARCH LTD demonstrates excellent financial health for its first year, with strong liquidity and positive equity signaling sound fiscal management. The company currently operates with minimal liabilities and no employees, reflecting a lean start-up phase in research and development. To sustain and grow this positive trajectory, the company should focus on cash flow management, strategic funding, and operational scaling in alignment with its research goals.

DUO SOUND RESEARCH LTD - Analysis Report

Company Number: 14707375

Analysis Date: 2025-07-20 16:59 UTC

Financial Health Assessment for DUO SOUND RESEARCH LTD

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1. Financial Health Score: A

Explanation:
The company exhibits a very healthy financial position for its first financial year, with a strong net current asset base relative to its liabilities. The micro-entity status and absence of debt distress symptoms signify excellent financial stability at this early stage. The score "A" reflects a solid foundation with minimal financial risk.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	75,449	Indicates a healthy pool of liquid or near-liquid resources (cash, receivables, etc.).
Current Liabilities	3,665	Very low short-term obligations, suggesting minimal immediate financial pressures.
Net Current Assets	71,784	Strong positive working capital, a vital sign of liquidity and operational flexibility.
Net Assets (Equity)	71,784	Represents the company's residual interest after liabilities; solid for a new micro-entity.
Share Capital	410	Initial capital investment; relatively modest but typical for a start-up micro-entity.
Employees	0	No employees yet, indicating lean operations or possibly a sole director setup.

Additional Observations:

• The company is active with no overdue filings or penalties, indicating good compliance and governance "vital signs."
• The director and significant controller is a single individual, Mr Philip Ashley Haynes, who owns 75-100% shares and voting rights, ensuring clear control and decision-making authority.

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3. Diagnosis: Financial Condition Assessment

DUO SOUND RESEARCH LTD shows "healthy cash flow" potential through its strong net current assets relative to liabilities—a key symptom of sound liquidity management. The absence of employees and minimal liabilities suggest the company is either in a start-up phase or operating a lean research structure, consistent with its industry classification in research and experimental development.

The micro-entity accounts reflect no debts or financial distress symptoms, and the company maintains a positive equity base. This "healthy heart" of financials indicates a stable financial state with no immediate risks of insolvency or liquidity crunches.

However, as a newly incorporated entity (March 2023) with limited operational history, the company currently has a "clean bill of health" but will require ongoing monitoring as it begins trading and incurs operational expenses.

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4. Recommendations to Improve Financial Wellness

• Maintain Strong Liquidity: Continue to monitor and manage working capital closely, ensuring that current assets comfortably cover upcoming liabilities to sustain operational flexibility.
• Formalize Cash Flow Forecasting: Develop rolling cash flow projections to anticipate and prepare for future funding needs or investment opportunities, essential for research-based ventures.
• Build Operational Capacity: Consider strategic hiring or outsourcing to build a team aligned with research objectives, balancing growth with cost control.
• Diversify Funding Sources: Explore grants, R&D tax credits, or investor funding to supplement the modest share capital and support research activities without incurring excessive debt.
• Regular Compliance Checks: Maintain timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.
• Risk Management: Implement basic risk controls and document research project plans to clarify potential liabilities and protect intellectual property.

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