GARIBALDI DATA SERVICES LIMITED

Executive Summary

Garibaldi Data Services Limited shows healthy financial "vital signs" typical of a start-up IT consultancy, with positive working capital and equity in its first year. While liquidity is stable, the company should monitor cash flow closely and consider building a stronger capital base to support future growth. Overall, the business is financially sound but would benefit from prudent financial management to sustain and enhance its health.

GARIBALDI DATA SERVICES LIMITED - Analysis Report

Company Number: 15161069

Analysis Date: 2025-07-20 18:57 UTC

Financial Health Assessment of Garibaldi Data Services Limited

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1. Financial Health Score: B

Explanation:
Garibaldi Data Services Limited demonstrates a generally healthy financial position for a micro-entity in its first year of operation. The company has positive net current assets (working capital), indicating it can meet short-term obligations. However, limited operating history and modest asset base warrant cautious optimism, hence a grade of B rather than A.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,279	Small investment in long-term assets appropriate for a start-up consultancy firm
Current Assets	53,444	Healthy cash and receivables to cover immediate expenses
Current Liabilities	42,806	Short-term debts are notable but comfortably covered by current assets
Net Current Assets (Working Capital)	10,638	Positive working capital indicates a buffer for day-to-day operational liquidity
Total Assets less Current Liabilities	11,917	Reflects net asset value, a positive equity position
Share Capital	2	Minimal share capital typical for micro-entities
Average Number of Employees	1	Lean operation consistent with consultancy activity

• Liquidity: Positive net current assets ("healthy cash flow") indicate the company can cover short-term liabilities, a vital sign of operational stability.
• Solvency: Shareholders’ funds are positive, signalling no immediate solvency concerns.
• Size & Scale: As a micro-entity, the business is small with limited financial complexity, which reduces risk but also limits growth potential at this stage.

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3. Diagnosis: Overall Financial Condition

Garibaldi Data Services Limited exhibits the financial "vital signs" of a young, small-scale consultancy business in good initial health. The positive net current assets and equity show no "symptoms of distress" such as insolvency or liquidity crunch. The company’s low fixed asset base and single employee count suggest it is operating with minimal overheads, typical of IT consultancy start-ups.

However, the narrow margin between current assets and liabilities suggests the company should maintain vigilance—any significant delay in receivables or unexpected expenses could strain liquidity. The minimal share capital reflects a typical start-up funding structure but could limit financial flexibility.

No audit was required or performed, which is normal for micro-entities but means less external scrutiny of financial accuracy.

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4. Recommendations: Improving Financial Wellness

• Enhance Cash Management:
  Maintain close monitoring of receivables and payables to avoid any liquidity bottlenecks. Consider building a cash reserve to strengthen working capital.

• Build Capital Buffer:
  Explore opportunities to increase equity capital, either through additional share issuance or retained earnings over time, to improve the company’s solvency margin and financial resilience.

• Plan for Growth:
  As consultancy demand grows, consider strategic investment in fixed assets or hiring to scale operations sustainably without compromising liquidity.

• Regular Financial Reviews:
  Implement periodic internal financial health check-ups to detect early warning signs of distress, akin to routine medical check-ups.

• Maintain Compliance and Transparency:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with regulatory bodies.

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