GVF CONSULTING SERVICES LTD

Executive Summary

GVF Consulting Services Ltd is currently in good financial health, with strong liquidity and positive net assets, typical for a new consultancy start-up. The company's financial "vital signs" indicate no immediate distress, though limited historic data advises ongoing monitoring. Maintaining cash reserves and establishing profitability tracking will be key to sustaining and improving financial wellness as the business grows.

GVF CONSULTING SERVICES LTD - Analysis Report

Company Number: 14785663

Analysis Date: 2025-07-20 12:40 UTC

Financial Health Assessment for GVF CONSULTING SERVICES LTD

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1. Financial Health Score: B

Explanation:
GVF Consulting Services Ltd shows a strong initial financial position for a newly incorporated company (incorporated April 2023). It possesses a healthy cash reserve and positive net assets, indicating sound liquidity and solvency. However, limited historical data and the company's very recent establishment warrant caution, preventing a top-grade rating. The "B" grade reflects a financially stable start with room for growth and improvement as the company matures.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	2,849	Small investment in tangible assets; typical for a service/consulting firm.
Current Assets	184,579	Strong liquidity base; predominantly cash and debtors.
Cash at Bank	171,979	Very healthy cash position—a vital sign of good "cash flow health."
Debtors (Receivables)	12,600	Moderate receivables; manageable and not excessive.
Current Liabilities	67,837	Short-term debts are moderate; must be monitored relative to cash flow.
Net Current Assets	116,742	Positive working capital; good short-term financial health (no liquidity distress).
Total Assets Less Current Liabilities	119,591	Indicates solid net asset base.
Net Assets (Shareholders’ Funds)	119,591	Positive net worth; company is solvent.
Share Capital	100 (noted as 1 in abridged accounts)	Minimal share capital; typical for small start-ups.

Additional Context:

• The company is classified as a small private limited company operating in management consultancy and IT consultancy sectors.
• Directors hold significant control, with a combined 75-100% share ownership, reflecting concentrated ownership typical in SMEs.
• The company filed unaudited abridged accounts, common for small entities, with no overdue filings, indicating good compliance.

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3. Diagnosis: Financial Vitality and Symptoms

GVF Consulting Services Ltd is exhibiting signs of a "healthy financial pulse" for a start-up:

• Healthy Cash Flow: The substantial cash balance (£171,979) provides a strong cushion for operational needs and working capital requirements, reducing immediate liquidity risk.
• Positive Working Capital: Net current assets of £116,742 indicate the company can comfortably cover its short-term liabilities, a sign of good short-term financial health.
• Solvent Position: Net assets of £119,591 confirm the company is solvent, with assets exceeding liabilities.
• Low Leverage: The company has no long-term debt noted, minimizing financial stress from interest obligations.
• Limited Fixed Assets: Small tangible assets investment aligns with a consultancy business model, which relies more on intellectual capital than physical assets.
• New Business Caution: The company is less than 1.5 years old, so while current financial health is sound, there is limited historical data to assess trends or resilience under stress.

There are no apparent symptoms of financial distress such as negative net assets, excessive liabilities, or cash flow shortages. However, the lack of detailed profit and loss data restrains a full assessment of profitability and operational efficiency.

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4. Recommendations: Prescriptions for Financial Wellness

1. Maintain Strong Cash Management: Continue prudent cash flow management to preserve the healthy cash reserves, ensuring the company can meet operational expenses and invest in growth opportunities.

2. Monitor Receivables and Payables: Keep a close watch on debtor days and creditor terms to optimise working capital and avoid liquidity bottlenecks.

3. Develop Profitability Metrics: As the company matures, focus on capturing and analysing profitability indicators (gross margin, net margin) to diagnose operational performance and efficiency.

4. Consider Capital Structure: With minimal share capital and no debt, assess future capital needs carefully. If growth requires investment, evaluate financing options that balance risk and cost.

5. Regular Financial Reviews: Implement quarterly financial health checks to detect early signs of stress and adjust strategies proactively.

6. Document Strategic Plans: Especially for consultancies, invest in documenting clear growth plans and risk assessments to guide sustainable expansion.

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