HTTBC CONSULTING LTD

Executive Summary

HTTBC CONSULTING LTD, a micro-entity in its first year, is currently experiencing early financial strain with negative working capital and shareholders’ funds, indicating liquidity and solvency challenges. Immediate focus on improving cash flow, capital structure, and operational revenue generation is critical to stabilize its financial health. With proactive management and capital support, the company can improve its outlook and build a sustainable financial foundation.

HTTBC CONSULTING LTD - Analysis Report

Company Number: 14793905

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment of HTTBC CONSULTING LTD

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1. Financial Health Score: D

Explanation:
HTTBC CONSULTING LTD shows signs of financial distress in its first financial year. The company reports negative net current assets and negative shareholders’ funds, indicating a liquidity strain and insufficient equity base. While it is early days for this micro-entity, the current figures suggest weakness in financial stability that requires close monitoring and prompt corrective action.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	152	Very low cash and receivables; insufficient buffer to cover short-term obligations.
Current Liabilities	187	Slightly exceeds current assets, indicating potential short-term liquidity issues.
Net Current Assets	-35	Negative working capital ("symptom of distress") – the company owes more in the short term than it owns.
Net Assets / Equity	-35	Negative shareholders’ funds indicate that liabilities exceed assets — a critical financial health warning.
Employees	0	No employees, so limited overheads, but also no workforce to generate immediate operational cash flow.

Additional Notes:

• The company is a micro-entity with minimal financial complexity but must improve its working capital position.
• The director and sole shareholder, Mrs Patrizia Magni, has full control, facilitating swift decision-making.
• The company changed its name recently, which may indicate a strategic repositioning but has no direct financial impact.

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3. Diagnosis: What the Financial Data Reveals

HTTBC CONSULTING LTD is in the early stages of its corporate life, having been incorporated in April 2023 and reporting its first set of accounts for the period ending April 2024. The negative net current assets and shareholders’ funds reflect an initial phase where expenses or liabilities have outpaced assets. This can be typical in startups but requires attention.

• Liquidity Symptoms: The company’s current liabilities exceed current assets, suggesting a "cash flow congestion." Without adequate cash or liquid assets, the company may struggle to meet immediate financial commitments.
• Capital Structure: Negative equity indicates that the company’s debts are currently higher than its assets, a "structural imbalance." This situation can restrict access to external finance and may deter suppliers or creditors.
• Operational Status: No employees and a very modest asset base indicate minimal operational activity or investment so far. The consulting activity may be at a nascent stage with limited revenues.

Overall, the company shows early "signs of financial frailty" but not yet insolvency. The situation is manageable at this stage but requires active financial management to avoid deterioration.

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4. Recommendations: Actions to Improve Financial Wellness

1. Improve Working Capital:

   • Secure short-term funding or inject additional capital to eliminate negative working capital. This will provide a "healthy cash flow" cushion to meet immediate obligations.
   • Tighten control on payables and receivables to balance cash flows.

2. Review Business Model and Revenue Generation:

   • Accelerate client acquisition and project delivery to generate positive operating cash flow.
   • Explore cost control measures to reduce overheads and conserve cash.

3. Capital Injection:

   • Consider equity injection from the sole shareholder or third-party investors to restore positive net assets and strengthen the balance sheet.

4. Financial Monitoring:

   • Establish regular financial reviews and forecasting to detect early warning signs.
   • Prepare for filing the next accounts and confirmation statements on time to maintain compliance and avoid penalties.

5. Strategic Planning:

   • Evaluate the recent name change and any strategic shifts to ensure alignment with market opportunities and financial viability.

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