IVORY CONSULTANCY LTD

Executive Summary

IVORY CONSULTANCY LTD is exhibiting strong early-stage financial health with robust growth in net assets, turnover, and profitability. Its healthy cash reserves and minimal liabilities indicate sound liquidity and operational efficiency. To sustain and enhance this positive trajectory, the company should focus on diversifying clients, reinvesting profits, and strengthening governance as it scales.

IVORY CONSULTANCY LTD - Analysis Report

Company Number: 14721889

Analysis Date: 2025-07-29 14:03 UTC

Financial Health Assessment of IVORY CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
IVORY CONSULTANCY LTD exhibits strong signs of early financial health with rapidly improving net assets, positive profitability, and solid working capital. However, as a young company incorporated in 2023, its financial history is limited, and it operates on a small scale which brings typical start-up risks. Its financials show no major distress symptoms, but continued monitoring and growth management are essential to maintain and improve financial wellness.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Net Assets	£108,989	Healthy net asset growth from £53,765 in 2024 to £108,989 in 2025 indicates strengthening equity base and financial stability.
Turnover (Revenue)	£70,555	Significant increase from £5,773 in 2024 shows strong business growth and market traction.
Operating Profit	£69,858	Operating margin is very high (~99%), which is excellent, but may reflect low expenses typical of consulting firms.
Profit for the Year	£55,224	Solid profitability, showing the company is generating positive returns after taxes.
Cash and Cash Equivalents	£66,797	Healthy cash position, increased significantly, indicating good liquidity and operational cash flow.
Current Liabilities	£714	Very low short-term debts, suggesting minimal immediate financial obligations.
Working Capital (Net Current Assets)	£108,989	Positive and growing working capital signals a strong short-term financial condition.
Tax Payable	£14,095	Reflects tax on profits; consistent with profitability but should be managed prudently.
Shareholder's Funds	£108,989	Reflects total equity; growth indicates retained earnings supporting company health.

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3. Diagnosis: Financial Health Overview

IVORY CONSULTANCY LTD's financial "vital signs" reveal a company in good health, showing rapid growth and profitability within its first two years. The jump in turnover and profit reflects successful client acquisition and efficient cost management, typical of a consultancy with low fixed costs. The company's "healthy cash flow" is evident in its strong cash reserves, providing a cushion for operational needs and investment opportunities.

No symptoms of financial distress are evident: liabilities are minimal, no overdue filings or tax issues, and the company remains actively managed by its sole director with full control. The balance sheet is clean, with no indication of excessive debt or liquidity constraints.

However, as a young company with limited history, it faces typical risks such as over-reliance on a single director, market fluctuations, and the need to maintain steady client inflows to sustain growth. The very high operating margin, while positive, also suggests limited reinvestment or scale, which could impact long-term sustainability if growth plateaus.

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4. Recommendations: Actions to Improve Financial Wellness

• Diversify Client Base: To reduce risk associated with dependency on limited clients or contracts, actively seek a broader portfolio of clients.
• Reinvest Profits: Consider allocating a portion of profits to marketing, technology, or staff training to build capacity and competitive advantage.
• Maintain Cash Reserves: Continue to nurture the strong cash position to buffer against unexpected expenses or cash flow fluctuations.
• Implement Formal Financial Controls: As the company grows, introduce budgeting, forecasting, and regular financial reviews to maintain control over costs and investment decisions.
• Plan for Succession and Governance: With a single director holding full control, prepare for governance scalability, including appointing additional directors or advisors as the business expands.
• Monitor Tax Planning: Engage in proactive tax planning to optimize tax liabilities and cash flow management.
• Prepare for Scaling: Develop strategic plans for scaling operations, including potential hiring or expanding service offerings, while managing overheads prudently.

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