DYS ENERGY LIMITED

Executive Summary

DYS ENERGY LIMITED is a newly incorporated micro-entity exhibiting typical early-stage financial characteristics, including slight liquidity pressure evidenced by negative working capital but positive net assets. Active management and strategic attention to cash flow and working capital will be crucial to ensure the company progresses towards a healthier financial position. With prudent financial controls and monitoring, the company's outlook can improve steadily.

DYS ENERGY LIMITED - Analysis Report

Company Number: 15423487

Analysis Date: 2025-07-29 16:45 UTC

Financial Health Assessment for DYS ENERGY LIMITED

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1. Financial Health Score: C (Fair)

Explanation:
DYS ENERGY LIMITED shows early-stage financial characteristics typical of a newly incorporated micro-entity. While the company has positive net assets and shareholders' funds, it displays a slight working capital deficiency, indicating some short-term liquidity stress. The overall financial structure is stable but warrants monitoring and strategic action to strengthen cash flow and liquidity.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,447	Modest investment in long-term assets; appropriate for micro-company size and early operations.
Current Assets	11,088	Liquid assets including cash and receivables that support ongoing operations.
Current Liabilities	11,545	Short-term debts slightly exceed current assets, a signal of tight liquidity ("symptom of distress").
Net Current Assets	-457	Negative working capital; potential cash flow pressure in meeting immediate obligations.
Total Assets less Current Liabilities	990	Indicates a small buffer after settling short-term liabilities.
Net Assets / Shareholders Funds	150	Positive equity but very thin, reflecting early-stage capital and modest profitability.

Additional Observations:

• The company employs 2 people, including directors, consistent with a micro-entity profile.
• No audit required, typical for micro companies, but limits external financial scrutiny.
• Directors are actively involved, with shareholdings split fairly evenly between two individuals.

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3. Diagnosis

DYS ENERGY LIMITED's financial "vital signs" reveal it is in the nascent phase of its business lifecycle. The negative net current assets (-£457) suggest symptoms of cash flow constraints, meaning the company may face challenges in covering its short-term bills without additional funding or improved receivables management. However, the positive net assets (£150) indicate the company has not yet entered financial distress or insolvency territory.

The modest fixed assets and current assets align with a start-up or micro-business investing cautiously. The "healthy cash flow" is not yet fully established, but with no overdue filings and active management, the company has a stable foundation.

From a financial health perspective, the company shows "early-stage stress" symptoms but no critical issues. Careful cash flow monitoring and capital management are essential to avoid liquidity crises.

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4. Recommendations

• Improve Working Capital Management:
  Address the negative net current assets by accelerating collections of receivables, negotiating extended payment terms with suppliers, or securing short-term financing to ease liquidity pressure.

• Build Cash Reserves:
  Aim to increase current assets, particularly cash balances, to create a buffer against unforeseen expenses or seasonal fluctuations.

• Monitor Expenses and Investments:
  Maintain cautious asset acquisitions and control overheads to avoid overextending financially.

• Regular Financial Reviews:
  Directors should implement monthly cash flow forecasts and budget reviews to detect early warning signs of financial strain.

• Explore Growth Opportunities Carefully:
  As the company is in electrical installation, demand can vary; ensure contracts are profitable and payment terms are clear to support financial health.

• Consider External Advice:
  Engage with financial advisors or accountants periodically to verify compliance and optimize tax planning and financial structure.

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