RENOVATIONS BY DUKE LTD

Executive Summary

Renovations By Duke Ltd shows early signs of financial health with positive working capital and net assets but remains vulnerable due to its small capital base and limited operational scale. With prudent capital strengthening and cash flow management, the company can build a more robust financial foundation to support sustainable growth.

RENOVATIONS BY DUKE LTD - Analysis Report

Company Number: 14722411

Analysis Date: 2025-07-29 13:45 UTC

Financial Health Assessment for Renovations By Duke Ltd

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1. Financial Health Score: C

Explanation:
The company is in a nascent stage, having been incorporated less than two years ago, and currently holds a modest positive net asset position (£856). Its working capital is positive but limited (£1,940), reflecting a cautious start. The lack of significant tangible fixed assets and minimal equity base suggest early-stage operations with limited financial robustness. While there are no immediate distress signals such as overdue filings or large liabilities, the financial "vital signs" indicate a fragile position that requires careful management to ensure sustainable growth.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£8,773	Healthy short-term assets, mainly cash or receivables, available to meet obligations.
Current Liabilities	£6,833	Short-term debts or payables; manageable but notable compared to assets.
Net Current Assets	£1,940	Positive working capital, indicating ability to cover short-term debts, albeit with a narrow margin.
Accruals & Deferred Income	£1,084	Obligations or income received in advance; reduces net assets and cash availability.
Net Assets (Shareholders’ Funds)	£856	Very low equity base; minimal buffer to absorb losses or finance expansion.
Number of Employees	1	Sole or very small operation, consistent with micro-entity status.
Account Category	Micro	Filing exemptions apply, reflecting small scale and simpler financial structure.

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3. Diagnosis

Renovations By Duke Ltd is in the early "growth" stage of its business lifecycle. The company's "financial pulse" shows it is currently solvent with positive working capital and net assets, which are essential indicators of "healthy blood flow" in financial terms. However, the narrow margin of net assets and limited capital base are "symptoms of fragility," meaning the company may be vulnerable to unforeseen financial shocks or operational setbacks.

The company has no overdue filings or apparent legal/administrative distress, which reflects good compliance and governance "vital signs." However, the small scale of operations, with only one employee and minimal equity, means it lacks the financial "immune system" to absorb losses or fund significant growth without external support or reinvestment.

The significant control by one individual (Mr. Joseph Hugh Duke) who also acts as a director suggests a closely held business. This structure can be advantageous for quick decision-making but may also concentrate risks.

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4. Recommendations

• Strengthen Capital Base: Consider injecting additional equity or retaining earnings to build a stronger financial buffer. This will provide resilience against cash flow volatility or unexpected expenses.
• Improve Working Capital Management: Monitor receivables and payables closely to maintain or increase net current assets, ensuring the company can meet short-term obligations comfortably.
• Plan for Growth: Develop a clear budget and financial forecast to manage the transition beyond micro-entity status, including potential hiring and investment in fixed assets.
• Maintain Compliance: Continue timely submission of accounts and confirmation statements to avoid penalties and maintain good standing.
• Explore Financing Options: If expansion is planned, investigate small business loans, grants, or investor funding to enhance liquidity without over-leveraging.
• Risk Management: Establish basic financial controls and contingency plans to mitigate risks associated with limited resources and a small management team.

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