LDN TRADE CONSULTING LIMITED

Executive Summary

LDN Trade Consulting Limited maintains a stable and solvent financial position with positive working capital and consistent net assets over recent years, indicating healthy financial "vital signs." Despite its small scale and no employees, the company shows no symptoms of distress, but should focus on capitalizing fully and exploring growth opportunities to enhance future financial resilience.

LDN TRADE CONSULTING LIMITED - Analysis Report

Company Number: 13631651

Analysis Date: 2025-07-29 21:05 UTC

Financial Health Assessment for LDN TRADE CONSULTING LIMITED (as of 30 September 2024)

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1. Financial Health Score: B

Explanation:
LDN Trade Consulting Limited demonstrates a generally healthy financial position for a micro-entity, with stable net assets and positive working capital over the last three years. The company maintains a modest but consistent buffer of current assets over current liabilities, indicating it can meet short-term obligations. However, the scale of operations is very small, with no employees and limited asset growth, which suggests a relatively low operational activity and potential constraints on scalability. This warrants a "B" grade, reflecting sound financial footing but with room to improve growth and resilience.

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2. Key Vital Signs

Metric	2024 (Latest)	Interpretation
Current Assets	£1,847	Cash, receivables, or other assets readily convertible to cash; small but stable.
Current Liabilities	£525	Short-term debts or obligations due within 1 year; low relative to assets.
Net Current Assets	£1,322	Positive working capital ("healthy cash flow cushion"); indicates ability to cover short-term debts comfortably.
Net Assets (Equity)	£1,422	Total assets minus liabilities, representing residual value to shareholders; stable and positive.
Share Capital	£100 (called up, not paid)	Indicates some capital has been committed but not fully paid; minor concern but manageable.
Employee Count	0	No employees recorded; potential reliance on director(s) or contractors.

Interpretation:
The company shows "vital signs" of financial stability with positive net current assets and net equity. The consistent net asset base over the past three years signals no significant losses or erosion of capital. The absence of employees and minimal asset base suggests a lean operation, typical of small consulting entities or holding companies.

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3. Diagnosis

• Symptoms of Financial Health:

  • Stable liquidity: The positive net current assets show the company has enough short-term assets to pay off immediate liabilities, a sign of "healthy cash flow."
  • Consistent net assets: No drastic changes in shareholder equity or net assets, indicating no significant losses or financial distress.
  • Limited operational scale: No employees and very low asset and liability figures imply the company is either in early stages or operates on a small scale.
  • No audit required: Filing under micro-entity provisions with no audit indicates simplicity but less external financial scrutiny.

• Underlying Business Health:

  • The company appears solvent with no signs of financial strain.
  • The lack of employee headcount and minimal assets could point to reliance on the director(s) for operations or outsourcing.
  • The presence of called-up but unpaid share capital (£100) may indicate a minor capital funding issue but is unlikely to threaten solvency.
  • No overdue filings or compliance issues, reflecting good governance and regulatory health.

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4. Recommendations

• Improve Capitalization:
  Ensure that the called-up share capital is fully paid to strengthen the equity base and avoid potential cash flow timing issues.

• Monitor Cash Flow Regularly:
  Maintain vigilance on cash inflows and outflows given the small asset base; even minor disruptions can impact liquidity.

• Consider Growth Strategies:
  Explore opportunities to increase operational scale, such as hiring employees or expanding client base, to improve revenue and asset base.

• Maintain Compliance and Reporting:
  Continue timely filings and consider voluntary audit or fuller accounts if business complexity grows, to enhance stakeholder confidence.

• Build Contingency Reserves:
  Even small companies benefit from holding a reserve to buffer unforeseen expenses or delayed payments.

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Summary:
LDN Trade Consulting Limited exhibits a stable and solvent financial condition typical of a micro-entity with limited operations. The company’s positive net current assets and net equity reflect a "healthy cash flow" and no immediate distress symptoms. However, the small scale and minimal operational footprint suggest cautious monitoring and gradual growth planning to ensure sustainable financial wellness.