G.W.T. CONSULTING LTD

Executive Summary

G.W.T. CONSULTING LTD exhibits strong financial health with healthy liquidity, positive working capital, and consistent growth in net assets. The company operates efficiently with minimal liabilities and sound governance, positioning it well for stable future performance. Continued cash flow management and strategic planning will support sustained financial wellness.

G.W.T. CONSULTING LTD - Analysis Report

Company Number: 12574227

Analysis Date: 2025-07-29 20:22 UTC

Financial Health Assessment Report for G.W.T. CONSULTING LTD

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1. Financial Health Score: A-

Explanation:
G.W.T. CONSULTING LTD demonstrates strong financial health with a solid net asset base, positive working capital, and healthy cash reserves relative to liabilities. The company has maintained stability over recent years, with consistent increases in net assets and working capital. The slight increase in current liabilities, largely due to taxation and social security costs, is manageable given the company's cash position. Overall, the financial "vital signs" indicate a robust and solvent condition with no immediate symptoms of distress.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Cash at Bank	43,838	Healthy cash flow; sufficient liquidity to cover short-term obligations.
Current Liabilities	12,588	Increased from previous years, mainly tax liabilities; still manageable.
Net Current Assets	31,250	Strong positive working capital, indicating good short-term financial health.
Net Assets / Shareholders’ Funds	31,250	Indicates the company is solvent and has a solid equity base.
Share Capital	1	Minimal share capital typical for small private companies; retained earnings build value.
Employee Count	1	Small operation, low overhead, enhancing financial stability.

Interpretation:

• The company’s cash reserves cover current liabilities by approximately 3.5 times, a sign of comfortable liquidity and operational cash flow.
• Net current assets confirm that the company can meet short-term debts without needing to liquidate long-term assets.
• Net assets have grown steadily from £26,352 in 2021 to £31,250 in 2024, showing accumulation of retained profits and financial strength.
• Taxation and social security liabilities have increased, reflecting growth in profitability but requiring careful cash management to avoid future strain.

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3. Diagnosis: Financial Health Overview

G.W.T. CONSULTING LTD presents a "healthy heart" financially — strong cash flow and net assets with no indication of distress or liquidity issues. The company operates on a small scale with just one employee (likely the director), which keeps overheads low and operational complexity minimal. The increase in tax liabilities is a typical "symptom" of business growth and profitability, not a cause for immediate concern but a signal to maintain diligent cash flow management.

The absence of long-term liabilities or debt indicates a clean balance sheet, which strengthens resilience against economic shocks. The company follows proper accounting policies under FRS 102, and filing deadlines are up to date, showing good governance and compliance — akin to regular health check-ups confirming ongoing wellness.

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4. Recommendations: Financial Wellness Improvement

1. Maintain Cash Flow Vigilance:
   Continue monitoring cash flow closely, especially tax and social security payments, to prevent late payments or penalties which could stress liquidity.

2. Build Contingency Reserves:
   Consider setting aside a contingency fund equivalent to 3-6 months of operating expenses to buffer against unforeseen downturns or delayed receivables.

3. Strategic Growth Planning:
   With stable finances, explore opportunities for controlled growth or diversification in management consultancy services to increase revenue streams and shareholder value.

4. Regular Financial Reviews:
   Conduct quarterly financial reviews to detect early signs of financial strain ("symptoms") and to adjust budgets or forecasts accordingly.

5. Tax Efficiency Consultation:
   Engage a tax advisor to optimize tax planning, ensuring liabilities are minimized legitimately and cash flow is not adversely affected.

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