INTA CONTRACTS GROUP LTD

Executive Summary

INTA CONTRACTS GROUP LTD is a financially sound startup with strong liquidity and positive net assets, indicating a "healthy" initial financial condition. While cash flow and profitability need close monitoring, director support and good working capital provide stability. With prudent management of receivables and controlled growth, the company is well-positioned for sustainable development.

INTA CONTRACTS GROUP LTD - Analysis Report

Company Number: 15437208

Analysis Date: 2025-07-20 17:34 UTC

Financial Health Assessment for INTA CONTRACTS GROUP LTD

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1. Financial Health Score: B

Explanation:
INTA CONTRACTS GROUP LTD is a newly incorporated private limited company (January 2024) in the construction sector. Its first set of filed accounts (period ending January 2025) indicates a sound initial financial position with positive net assets and healthy working capital. Given its startup status, the company shows promising financial "vital signs" but lacks a track record of profitability and cash flow history, which tempers the score to a “B.” This reflects a generally good financial status but with early-stage risks to monitor.

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2. Key Vital Signs and Interpretation

Vital Sign	Value (£)	Interpretation
Fixed Assets	1,700	Modest investment in tangible assets (equipment, fixtures).
Current Assets	19,967	Healthy short-term resources available, including cash and debtors.
Cash at Bank	4,016	Positive but limited cash reserve for operations.
Debtors (Trade + Other)	14,191	Significant receivables; could indicate good sales but also potential cash flow delay.
Stocks (Work in Progress)	1,760	Inventory in progress; normal for construction projects.
Current Liabilities	10,700	Debts due within one year; manageable given current assets.
Net Current Assets (Working Capital)	9,267	Strong positive working capital, indicating liquidity to meet short-term obligations.
Net Assets (Shareholders' Funds)	10,952	Equity base is positive and stable for a startup.
Share Capital	2	Minimal formal share capital, typical for a new company.
Directors’ Loans	~2,443 (owed to directors)	Related party loans indicate director support but increase creditor risk.

Interpretation:
The company shows healthy cash flow potential with net current assets nearly double current liabilities, implying no immediate liquidity distress. The receivables balance is high relative to cash, which is common in construction but should be monitored to avoid symptoms of cash flow strain if collections are delayed. The low fixed assets base reflects the company's early stage and asset-light model.

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3. Diagnosis: Overall Financial Condition

INTA CONTRACTS GROUP LTD presents as a financially stable startup in the construction of domestic buildings. The company has:

• A solid equity foundation with positive net assets.
• Adequate working capital to cover short-term debts.
• A balanced mix of cash, debtors, and work-in-progress stock, typical for the sector.
• Directors have funded the company through loans, showing confidence and support.

Symptoms of concern or risk include:

• The absence of employees (average number is zero) suggests reliance on subcontractors or directors, which may impact scalability.
• No profit and loss account filed (due to exemption), so profitability and operational efficiency cannot be assessed yet.
• High receivables relative to cash may indicate potential liquidity risk if customer payments delay.

The company is not in distress and shows no signs of financial disease such as negative working capital or insolvency risk, but as a young entity, it needs to build a financial track record to confirm ongoing health.

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4. Recommendations for Financial Wellness Improvement

1. Improve Cash Flow Management:

   • Accelerate debtor collections to convert receivables into cash faster, reducing liquidity risk.
   • Implement clear credit control policies and follow up on overdue invoices promptly.

2. Monitor Directors’ Loans:

   • Regularly review related party balances to ensure repayment plans are in place to avoid over-reliance on director funds.

3. Build Profitability Metrics:

   • Begin tracking operational profitability closely to ensure sustainable margins as turnover grows.
   • Prepare to file full accounts including profit and loss in future years to provide transparency.

4. Plan for Growth:

   • Consider hiring staff or subcontractors strategically to support expansion without overextending resources.
   • Invest in fixed assets prudently aligned with business needs to avoid unnecessary capital lock-up.

5. Maintain Compliance and Record-Keeping:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility.

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