K T SALES CONSULTANCY LTD

Executive Summary

K T SALES CONSULTANCY LTD is financially healthy with positive working capital and net assets, typical for a small consultancy in early operation stages. While there are no signs of distress, a slight decline in retained funds suggests the need for careful cash flow and profitability management to sustain growth. With prudent financial oversight and strategic investment, the company can maintain its stable condition and build resilience for future expansion.

K T SALES CONSULTANCY LTD - Analysis Report

Company Number: 13884005

Analysis Date: 2025-07-29 20:24 UTC

Financial Health Assessment for K T SALES CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
K T SALES CONSULTANCY LTD demonstrates a stable financial position with positive net assets and working capital, indicating good short-term liquidity and solvency. However, the slight decline in net assets and net current assets year-on-year signals mild pressures that warrant monitoring. The company is in its early years of operation, maintaining a healthy cash flow position but with limited asset base and scale, typical for a micro-entity startup phase. Overall, the financial "vital signs" suggest a generally healthy but cautious outlook.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	189	Minimal investment in long-term assets, typical for a consultancy with low capital intensity.
Current Assets	29,767	Sufficient short-term resources, likely cash and receivables, supporting liquidity.
Current Liabilities	25,052	Short-term debts are manageable but close to current assets, indicating tight working capital.
Net Current Assets	4,715	Positive working capital ("healthy cash flow buffer"), but has decreased from prior year.
Net Assets / Shareholder Funds	4,904	Positive equity base, though reduced from £5,751 the previous year, indicating slight erosion.
Employee Count	1	Very small operation, limiting scale but also overhead risk.
Account Category	Micro	Qualifies for simplified reporting, reflecting small size and limited complexity.

Interpretation of Vital Signs:
The company's liquidity — its ability to cover short-term obligations — is stable but slightly weakening, as net current assets have declined by about 12% compared to the prior year. The minimal fixed asset base aligns with a service-based business model with low capital needs. The net assets remain positive, indicating solvency, but the decline suggests profits are not being retained or that liabilities are growing faster than assets. The small employee base keeps overheads low but may constrain growth.

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3. Diagnosis: Financial Condition Overview

K T SALES CONSULTANCY LTD presents as a small, early-stage consultancy with generally sound financial health. The "symptoms" from the numbers indicate:

• Healthy liquidity: Positive net current assets mean the company can meet near-term liabilities without distress.
• Stable solvency: Positive net assets reflect a buffer against insolvency risk.
• Mild symptom of asset erosion: Reduction in net assets and working capital suggests either lower profitability or increased liabilities.
• Low capital intensity: Minimal fixed assets are appropriate for the consultancy sector but indicate limited investment in growth infrastructure.
• Conservative scale: Single-employee operation implies low fixed costs but also limited capacity for scaling services.

No immediate financial distress is evident, but the slight downward trend in net assets and working capital should be monitored as a "symptom" that could signal emerging challenges such as increased costs or slower revenue growth.

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4. Recommendations

To strengthen the company's financial wellness and support sustainable growth, consider the following actions:

• Improve Profit Retention: Focus on increasing profitability and retaining earnings to rebuild net asset levels and financial resilience.
• Tighten Working Capital Management: Monitor receivables and payables closely to prevent erosion of liquidity; consider negotiating better payment terms if possible.
• Explore Growth Investment: While maintaining a lean asset base is cost-effective, evaluate opportunities to invest selectively in technology or marketing to expand client base and revenue.
• Financial Planning & Forecasting: Develop regular cash flow forecasts to anticipate liquidity needs and avoid surprises.
• Maintain Compliance and Reporting Discipline: Continue timely filing of accounts and confirmation statements to avoid penalties and ensure transparency.
• Consider Succession or Capacity Building: Since the company currently operates with a single employee/director, assess risks related to key person dependency and plan for potential scaling or backup.

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