DVG CONSULTING LTD

Executive Summary

DVG CONSULTING LTD is a very young, micro-sized business with a stable but minimal financial base, showing early signs of growth but limited trading activity. The company currently maintains a healthy short-term financial position with positive net current assets but needs to focus on generating consistent revenue and managing cash flow prudently. With careful financial management and growth strategies, the company has the potential to strengthen its financial health in coming years.

DVG CONSULTING LTD - Analysis Report

Company Number: 13810270

Analysis Date: 2025-07-19 12:07 UTC

Financial Health Assessment for DVG CONSULTING LTD

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1. Financial Health Score: C

Explanation:
DVG CONSULTING LTD shows signs of very early-stage development with minimal financial activity. The company’s net assets have increased from £1 in 2022 to £81 in 2023, indicating some growth, but the absolute scale remains very small. The lack of turnover data for the latest year and negligible asset base limits the robustness of the financial health. A grade C reflects a stable but fragile financial state typical of a micro-entity in its infancy.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Turnover	Not reported for 2023	No revenue data available for the latest year; possibly no sales or early stage business.
Current Assets	£108	Minimal cash or receivables; very limited working capital.
Current Liabilities	£27	Low short-term obligations; manageable given asset level.
Net Current Assets	£81	Positive working capital; “healthy cash flow cushion” but very small scale.
Net Assets (Equity)	£81	Slight increase from prior year; indicates retained earnings or capital injection.
Employees	0	No staff employed, suggesting owner-operated or service-based with limited expenses.
Company Age	~2 years	Very young company; early growth phase expected.

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3. Diagnosis

DVG CONSULTING LTD presents as a typical micro-startup with "symptoms of early-stage business life." The balance sheet shows a tiny but positive equity position, with net current assets exceeding liabilities, which is a sign of "healthy short-term financial stability." However, the absence of reported turnover in the latest year could indicate limited trading activity or a delay in revenue recognition. The minimal fixed assets and zero employees suggest a low overhead operation, perhaps consulting or freelance services which aligns with its SIC codes (educational support services and other service activities).

The company is not in distress—there are no overdue filings, no liabilities burden beyond a very small amount, and the director has majority control with full voting rights, providing clear governance. However, the company's financial scale is very limited, which means it remains vulnerable to cash flow shocks or unexpected expenses. The "symptoms" do not indicate illness but rather immaturity and infancy in financial development.

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4. Recommendations

• Revenue Generation Focus: Prioritize increasing turnover and operational activity to build a sustainable revenue base. This will improve cash inflows and reduce dependency on equity or loans.

• Cash Flow Monitoring: Maintain a close watch on cash flow to ensure liabilities remain covered by current assets. Even small shortfalls can quickly become critical at this scale.

• Cost Control: Continue to operate leanly, avoiding unnecessary expenses while building client base or service offerings.

• Financial Reporting: Consider preparing full Profit & Loss statements to gain clearer insight into profitability and operational efficiency.

• Growth Planning: As the company grows, plan for scaling fixed assets or hiring staff, ensuring that working capital can support expansion.

• Governance: Maintain strong director oversight and ensure compliance with filing deadlines to avoid penalties and maintain business credibility.

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