MY DIGITAL BRICKS LIMITED

Executive Summary

MY DIGITAL BRICKS LIMITED demonstrates strong financial health characterized by excellent liquidity and growing retained earnings, indicating a stable and well-managed business. The company should continue its prudent cash management while exploring growth opportunities and monitoring liabilities to maintain and enhance its financial wellness.

MY DIGITAL BRICKS LIMITED - Analysis Report

Company Number: 12638524

Analysis Date: 2025-07-29 12:58 UTC

Financial Health Assessment for MY DIGITAL BRICKS LIMITED

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1. Financial Health Score: B

Explanation:
MY DIGITAL BRICKS LIMITED exhibits a solid and improving financial position with healthy liquidity, positive net current assets, and growing retained earnings. The company shows strong cash reserves relative to liabilities, which is a good sign of financial wellness. Although the company is small in scale with minimal share capital and limited fixed assets, it demonstrates stability and prudent financial management. The score "B" reflects good health with room for further growth and efficiency improvements.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£39,698	Healthy level of short-term resources, primarily cash. Indicates good liquidity.
Cash Balance	£38,723	Strong cash position, covering the majority of current liabilities, a symptom of excellent cash flow management.
Current Liabilities	£14,449	Manageable short-term debts; increased from prior year but comfortably covered by cash.
Net Current Assets	£25,249	Positive working capital, indicating ability to meet obligations and invest in growth.
Shareholders Funds	£26,698	Reflects accumulated profits, showing retained earnings have grown significantly since incorporation.
Fixed Assets (Net Book Value)	£1,449	Low fixed asset base, typical for an IT consultancy, meaning minimal burden from depreciation.
Debtors	£975	Low trade receivables, suggesting quick client payments or low credit risk.
Share Capital	£1.00	Minimal nominal capital, common in micro/private companies.

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3. Diagnosis

MY DIGITAL BRICKS LIMITED presents as a financially stable micro/small private limited company operating in the IT consultancy sector. The company’s vital signs reveal a "heart" of strong liquidity, with cash reserves significantly exceeding current liabilities—this is akin to a patient having a strong pulse and good oxygen levels.

The steady increase in net current assets and shareholders’ funds over recent years indicates healthy "growth" and retention of earnings rather than distribution, akin to building muscle mass for future resilience. The low fixed assets base is typical for the sector and does not indicate any red flags.

However, the company’s reliance on cash rather than accounts receivable or other current assets suggests conservative credit policies or limited client base scale. While this is not a negative symptom, it hints at opportunities to diversify income streams or client engagements.

The lack of an income statement in the filing limits insight into profitability trends and operational efficiency but the retained earnings growth is a positive proxy for profitability.

No signs of distress or financial strain are evident: no overdue filings, no significant liabilities, and no director disqualifications. The company is in an active and compliant state with up-to-date filings.

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4. Recommendations

1. Maintain Strong Cash Management: Continue prudent cash management practices to preserve liquidity "vital signs"—this is the company’s financial lifeblood.

2. Diversify Client Base and Credit Terms: Explore expanding client portfolio and consider strategic credit terms to increase trade debtors moderately, which can boost revenues without jeopardizing cash flow.

3. Leverage Retained Earnings: Consider reinvesting some accumulated profits into scalable growth initiatives such as marketing, training, or technology upgrades to strengthen competitive positioning.

4. Monitor and Manage Current Liabilities: While current liabilities are manageable, the increase from £5,324 to £14,449 year-on-year should be monitored to avoid any future liquidity stress.

5. Prepare for Growth: As the company grows, consider formal audit and financial statement preparation to enhance transparency and stakeholder confidence.

6. Profitability Analysis: Implement periodic internal profitability reviews to identify operational efficiencies and optimize cost structures, ensuring the "heart" of the business continues to beat strongly.

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