KIERAN DORAN RENDERING LTD

Executive Summary

Kieran Doran Rendering Ltd demonstrates a marked improvement in financial health with positive working capital and increased net assets, indicating a stable and growing business. While the company benefits from sound liquidity and equity, careful attention to fixed asset management and ongoing cash flow monitoring will be crucial to sustaining this healthy trajectory. Strategic growth and enhanced governance could further strengthen its financial resilience.

KIERAN DORAN RENDERING LTD - Analysis Report

Company Number: 13106546

Analysis Date: 2025-07-20 15:00 UTC

Financial Health Assessment Report: KIERAN DORAN RENDERING LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid improvement in its financial position with positive net current assets and growth in net assets in the latest financial year. The balance sheet shows a healthy working capital position and positive shareholder funds, indicating financial stability. However, limited scale (micro-entity) and relatively small asset base suggest room for stronger liquidity and fixed asset management. Overall, the company is in good financial health but should maintain vigilance to sustain this trajectory.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	2,362	Slight decrease from previous years; fixed assets still modest, reflecting low capital intensity.
Current Assets	5,206	Significant increase, indicates improved liquidity and cash or receivables position.
Current Liabilities	2,541	Increased but well covered by current assets, implying manageable short-term obligations.
Net Current Assets	2,665	Positive working capital "healthy cash flow" buffer to meet short-term liabilities comfortably.
Total Assets Less Current Liabilities	5,027	Stronger net asset position, showing growth in overall company value.
Net Assets (Shareholder Funds)	5,027	Positive and increased, reflecting retained profits and sound equity base.
Share Capital	1.00	Nominal share capital typical of micro-entity, equity mostly from retained earnings.
Employees (average)	1	Small operation, minimal payroll obligations and fixed overheads.

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3. Diagnosis: Financial Condition Overview

Symptoms Analysis:

• The company shows clear signs of recovery and financial strengthening over the last year, moving from a negative net current asset position to a positive one, which is a significant improvement in liquidity health.
• The increase in current assets primarily drives this improvement, suggesting better cash management or higher receivables.
• Fixed assets have decreased, possibly indicating disposals or lower reinvestment in long-term equipment, which could be deliberate to optimize costs or due to the nature of the business (floor and wall covering).
• The net assets and shareholder funds have increased by approximately 63% from 2023 to 2024, indicating retained earnings and improved profitability, though profit and loss details are not provided.
• The company operates with a single director who is also the sole owner, which implies centralized decision-making but also potential dependency risk on one individual.
• No indications of overdue filings or compliance issues, which is a positive sign regarding governance and regulatory adherence.

Underlying Business Health:
The company appears financially sound with a stable equity base and improving liquidity. The business shows resilience and recovery from prior years' negative working capital "symptoms of distress," moving towards a healthier operational footing. The small scale and micro-entity status limit complexity, but also restrict growth and financial resilience against larger shocks.

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4. Recommendations: Path to Financial Wellness

1. Maintain Positive Working Capital:
   Continue managing receivables and payables efficiently to sustain or improve the positive net current asset position. Healthy working capital is like a strong pulse indicating operational vitality.

2. Monitor Fixed Asset Utilization:
   Review whether the decrease in fixed assets impacts production capability or service delivery. Avoid underinvestment that might harm future revenue streams.

3. Build Cash Reserves:
   Enhance cash holdings to buffer against unexpected expenses or downturns—think of this as building a financial immune system.

4. Diversify Revenue and Client Base:
   Reduce dependency on a limited number of clients or contracts to mitigate risk and smooth income streams.

5. Consider Growth Opportunities:
   Explore ways to scale operations moderately, such as investing in marketing or expanding service offerings, to improve profitability and asset base.

6. Governance and Succession Planning:
   As the sole director and owner, consider plans for delegation or succession to reduce single-person risk and ensure business continuity.

7. Regular Financial Monitoring:
   Implement quarterly financial reviews to detect any emerging "symptoms" early, allowing prompt corrective action.

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