FINTUITION CONSULTING LIMITED

Executive Summary

Fintuition Consulting Limited, a newly incorporated micro-entity, currently exhibits negative working capital and equity, signaling early-stage financial distress typical of startups. Immediate focus on capital injection, revenue growth, and cash flow management is essential to stabilize and strengthen the company's financial health. With timely action, the company can improve its financial "vital signs" and progress towards sustainable operations.

FINTUITION CONSULTING LIMITED - Analysis Report

Company Number: 14686982

Analysis Date: 2025-07-29 14:52 UTC

Financial Health Assessment for Fintuition Consulting Limited

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1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress as of its latest reporting date. With net current liabilities and net assets both deeply negative (£-5,171), the business is effectively insolvent on a balance sheet basis. While this is not uncommon for a newly incorporated micro-entity, the negative equity and working capital position are symptoms that require prompt attention. The score D reflects early-stage financial weakness, with potential for recovery if corrective steps are taken swiftly.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	275	Very low; minimal liquid resources to meet short-term obligations
Current Liabilities	5,467	Small but exceeds current assets, indicating liquidity strain
Net Current Assets (Working Capital)	-5,171	Negative; signals inability to cover short-term debts with liquid assets
Net Assets (Equity)	-5,171	Negative; company’s liabilities exceed total assets
Number of Employees	1	Sole director/employee structure; limited operational scale
Audit Status	Exempt	Micro entity exemption; no audit performed, less external assurance

Interpretation:

• Liquidity (Cash Flow) Concern: The "healthy cash flow" vital sign is weak here, with current liabilities nearly 20 times larger than current assets, indicating symptoms of distress in meeting short-term obligations.
• Capital Structure: Negative net assets indicate the company has used more capital than it currently possesses, a red flag for financial health.
• Operational Scale: A single employee (the director) and micro-entity status suggest early-stage startup dynamics, which often come with initial losses and capital infusion needs.

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3. Diagnosis

Fintuition Consulting Limited is in its infancy (incorporated in February 2023) and has reported its first set of financials as a micro-entity. The company currently exhibits:

• Negative working capital: Current liabilities exceed current assets by £5,171, indicating the company currently cannot meet its immediate debts with available liquid resources.
• Negative equity: Shareholders’ funds are negative, suggesting the company has either incurred startup losses or has initial shareholder loans or other obligations exceeding its assets.
• Limited operational complexity: With just one employee (the director), overheads are likely low, but the financial position is precarious.

These symptoms are common in early-stage startups that are investing in growth or have yet to generate revenues sufficient to cover costs. However, without an injection of capital or an improvement in revenues, the company risks insolvency.

The company is not in liquidation or administration, which is positive, but the financial "pulse" is weak and requires monitoring and action.

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4. Recommendations

To improve financial wellness and move towards a healthier financial position, the company should consider:

• Capital Injection: The director or investors should consider injecting additional funds to strengthen the balance sheet and improve liquidity.
• Revenue Generation: Accelerate client acquisition or project delivery to increase turnover and generate positive cash flow.
• Cost Control: Monitor and minimize unnecessary expenses to reduce the burn rate while the business ramps up.
• Cash Flow Management: Implement strict cash flow forecasting and management practices to avoid liquidity crises.
• Seek External Advice: Consider consulting with a financial advisor or accountant to develop a financial recovery plan.
• Regular Monitoring: Maintain up-to-date financial records and review financial performance monthly to detect issues early.
• Prepare for Filing Deadlines: Ensure timely submission of accounts and confirmation statements to avoid penalties and maintain compliance.

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