SPECIALIST DOOR DESIGN SOLUTIONS LTD

Executive Summary

Specialist Door Design Solutions Ltd shows solid financial improvement with positive working capital and increasing net assets, indicating a healthy liquidity position and growing equity. However, its micro-entity scale and lack of employees suggest limited operational capacity, warranting strategic focus on building workforce and managing growth to sustain long-term financial wellness.

SPECIALIST DOOR DESIGN SOLUTIONS LTD - Analysis Report

Company Number: 13804825

Analysis Date: 2025-07-29 20:23 UTC

Financial Health Assessment of Specialist Door Design Solutions Ltd (as at 31 December 2024)

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1. Financial Health Score: B

Explanation:
Specialist Door Design Solutions Ltd demonstrates a solid improvement in financial health over the recent years, particularly in liquidity and net asset growth. While the company is small (micro-entity classification) and still in early stages of operation (incorporated in 2021), its balance sheet shows strengthening working capital and equity base. However, the absence of employees and limited asset base reflect a very lean operation that may be vulnerable to market or operational shocks, suggesting room for cautious optimism rather than a top-grade rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	3,397	Low fixed assets indicate minimal investment in long-term resources; typical for a micro design business.
Current Assets	36,903	Healthy level of liquid and short-term assets, giving operational flexibility.
Current Liabilities	29,525	Moderate short-term obligations; manageable with current assets.
Net Current Assets (Working Capital)	7,378	Positive and improving working capital, signaling healthy short-term financial resilience ("healthy cash flow").
Net Assets / Shareholders' Funds	10,775	Growth from £4,648 in 2023 to £10,775 in 2024 reflects increasing equity and retained earnings, a good sign of business solidity.
Employee Count	0	No employees, implying very low overhead but potential capacity constraints.

Vital Signs Interpretation:
The company exhibits "normal vital signs" for a micro-entity: positive working capital (current assets exceed current liabilities), rising net assets, and a stable fixed asset base. This indicates a business that is maintaining liquidity and building equity, although the small scale and no staff hint at a limited operational footprint.

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3. Diagnosis: Business Health Overview

The financial "symptoms" suggest Specialist Door Design Solutions Ltd is in a stable condition with improving financial strength over the last two years. The positive net current assets ("healthy cash flow muscles") imply the company can cover its short-term debt comfortably, reducing liquidity stress risks.

The increase in shareholders' funds from £4,648 to £10,775 is akin to "strengthening the heart" of the business, showing retained profits or additional capital inflows. This also improves the company's buffer against financial shocks.

However, the lack of employees may be a "nervous system" limitation – it constrains operational capacity and growth potential. The company may rely heavily on directors or subcontractors, which could increase risk if not well managed.

No audit requirement and micro-entity accounting treatment mean financial statements are simplified, which is normal but means less detailed insight into profitability and cash flow quality.

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4. Recommendations for Financial Wellness Improvement

• Build Operational Capacity: Consider hiring key staff or formalizing subcontractor arrangements to avoid over-reliance on directors. This will help "strengthen the nervous system" of the business for growth.
• Maintain and Monitor Working Capital: The positive cash flow is a vital sign of health. Regularly monitor receivables and payables to keep liquidity "in the green zone."
• Plan for Asset Investment: Modest fixed asset growth suggests minimal capital expenditure. Strategically investing in tools or technology could improve efficiency and competitive advantage.
• Profit & Loss Insight: Although P&L is not filed, internally maintain robust profit and cash flow tracking for early detection of "symptoms of distress" such as margin erosion.
• Risk Management and Compliance: Ensure compliance with filing deadlines to avoid penalties and maintain good standing. Additionally, consider preparing for audit or review if the company grows beyond micro thresholds.
• Strategic Growth Focus: Explore new client opportunities in the specialised design sector (SIC 74100) to leverage existing expertise and improve revenue streams.

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