INTELLEQT AI LIMITED

Executive Summary

INTELLEQT AI LIMITED is a newly formed micro-entity with modest net assets and positive working capital but currently zero liquid assets, indicating tight cash flow. The company shows typical early-stage financial characteristics with a promising base but needs to improve liquidity management and revenue conversion to ensure sustainable growth. With careful financial oversight and focus on cash flow, the company has the potential for a healthy financial future.

INTELLEQT AI LIMITED - Analysis Report

Company Number: 15390974

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment for INTELLEQT AI LIMITED

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1. Financial Health Score: C

Explanation:
INTELLEQT AI LIMITED, as a micro-entity in its first financial year, shows a modest but stable financial position. The company has positive net assets and shareholders’ funds, indicating initial capital contribution and no accumulated losses. However, the absence of current assets (cash or equivalents) against current liabilities suggests a cash flow tightness symptom that warrants attention. Overall, the company is in a start-up phase with limited financial history, so a cautious rating of C reflects potential but also early-stage risks.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	0	No immediate cash or receivables; this is a critical symptom of liquidity stress.
Current Liabilities	47,022	Short-term debts and obligations; significant relative to assets.
Net Current Assets (Working Capital)	3,055	Positive but very small; working capital barely covering short-term liabilities.
Net Assets (Equity)	3,055	Positive equity signals initial capital investment and no net losses to date.
Fixed Assets	0	No long-term assets; consistent with early-stage or asset-light business model.
Prepayments & Accrued Income	50,077	Represents payments made or income earned but not yet realized; a positive sign of business activity.
Number of Employees	3	Small team, typical for a micro-business; manageable overheads but limited capacity.

Interpretation of Vital Signs:

• The zero current assets paired with liabilities of £47,022 indicates the company currently has no cash or liquid assets to cover short-term debts, a "symptom" of cash flow distress.
• However, the existence of prepayments and accrued income (£50,077) is a positive indicator suggesting incoming funds or payments made in advance, somewhat mitigating immediate liquidity concerns.
• The company’s net current assets of £3,055 (working capital) is positive but minimal, meaning day-to-day operational liquidity is tight.
• Net assets and shareholders’ funds at £3,055 reflect initial capital and no losses, a healthy sign in the start-up phase.

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3. Diagnosis

INTELLEQT AI LIMITED is a newly incorporated micro-entity operating in information technology consultancy, with a focus on applied mathematics, modelling, machine learning, and AI. The company shows the typical financial "vitals" of an early-stage start-up: modest equity base, limited fixed assets, and a small workforce.

Symptoms of concern:

• Lack of liquid assets to cover current liabilities may indicate a potential liquidity crunch if planned income does not materialize promptly.
• The financial structure shows reliance on prepayments or income yet to be received, which is common in consultancy but requires vigilant cash flow monitoring.

Positive indicators:

• Positive net assets and shareholders’ funds show no accumulated losses, indicating financial stability at this early stage.
• The company’s management (sole director and 75-100% owner) appears stable and in control, which is crucial for swift decision-making in early phases.

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4. Prognosis

Given the very early stage of the company, the prognosis depends heavily on successful conversion of accrued income into cash, managing liabilities, and growing revenue streams. If the company can maintain or increase its working capital, sustain operational cash flow, and avoid overextending liabilities, it can transition from fragile start-up to a financially healthy entity.

However, if liquidity remains tight and liabilities grow without corresponding income, the company could face financial distress symptoms requiring intervention.

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5. Recommendations

• Improve Liquidity Management: Prioritize converting accrued income and prepayments into cash as soon as possible to build a "healthy cash flow" buffer.
• Monitor and Manage Current Liabilities: Negotiate extended payment terms with creditors where possible to ease short-term cash demands.
• Build Cash Reserves: Aim to accumulate liquid assets to cover at least 3-6 months of operating expenses, reducing risk of cash flow "symptoms" of distress.
• Regular Financial Reviews: Conduct monthly cash flow forecasting and financial health checks to diagnose any emerging issues early.
• Leverage Owner Support: Given the director’s substantial ownership and control, explore injection of additional capital if liquidity pressures arise.
• Focus on Revenue Growth: As a consultancy in a high-demand sector (AI and IT consultancy), focus on winning contracts and realizing revenues quickly to improve financial "vital signs."

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