Company Number: 13453982

Analysis Date: 2025-07-20 18:25 UTC

Financial Health Assessment of INCERTO GROUP LIMITED

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1. Financial Health Score: A-

Explanation:
INCERTO GROUP LIMITED demonstrates strong financial stability typical of a healthy micro-entity. The company maintains a robust net current asset position, a positive and growing equity base, and low liabilities relative to assets, all of which point to a financially sound operational footing. The slightly conservative score reflects the limited scale and the absence of detailed profitability data, which is common for micro-entities.

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2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Fixed Assets	£4,409	Stable, low investment in long-term assets, typical for a consultancy.
Current Assets	£245,037	Healthy level of liquid assets signaling good liquidity ("healthy cash flow").
Current Liabilities	£18,652	Low short-term obligations; manageable and unlikely to cause liquidity strain.
Net Current Assets (Working Capital)	£226,385	Strong positive working capital indicating operational liquidity and buffer against financial stress.
Shareholders' Funds (Equity)	£230,794	Positive and growing equity base, indicating retained earnings and capital injections are supporting the business.
Number of Employees	2	Small team size consistent with micro-entity status; operational scale is lean.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity & Cash Flow: The company’s "vital signs" show a strong liquidity position with current assets far exceeding current liabilities. This suggests the business has ample cash or easily convertible assets to meet its short-term obligations, which is a critical indicator of financial health.

• Solvency: Positive shareholders’ funds and net assets demonstrate the company is solvent, with assets comfortably exceeding liabilities. This indicates no immediate risk of financial distress or insolvency.

• Growth & Stability: The increase in net current assets and shareholders’ funds from 2023 to 2024 suggests positive retained earnings or fresh capital injections, which are good "symptoms" of growth and stability in a young company.

• Operational Scale: With only 2 employees and relatively low fixed assets, the company operates a lean business model typical for an IT consultancy, minimizing overhead and fixed costs.

• Financial Transparency: The company utilizes micro-entity reporting standards and has not provided profit and loss details, which limits visibility into profitability trends but is acceptable under UK regulations for micro companies.

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4. Recommendations: Actions to Improve Financial Wellness

• Maintain Healthy Cash Flow: Continue monitoring working capital closely to sustain liquidity, especially as the business grows. Avoid overextending credit or accumulating short-term debt.

• Build Profitability Reporting: Consider preparing and reviewing more detailed profit and loss accounts internally to monitor margins and operational efficiency, even if not required for filing. This diagnostic data can act like a "health chart" to identify early signs of financial strain.

• Plan for Growth Investment: With a solid equity base, explore opportunities to gradually increase fixed assets or invest in scalable resources to fuel growth, while keeping the balance sheet healthy.

• Risk Management: Although current liabilities are low, maintain vigilance on any contingent liabilities or contracts that could strain liquidity unexpectedly.

• Governance & Compliance: Ensure timely filing of accounts and confirmation statements continues to avoid penalties and maintain good standing, which supports financial stability.

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