Company Number: 13727350

Analysis Date: 2025-07-20 16:26 UTC

Financial Health Assessment of NANT TECHNICAL SERVICES LTD

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1. Financial Health Score: B

Explanation:
NANT TECHNICAL SERVICES LTD demonstrates a solid and improving financial position typical of a healthy micro-entity in its early years. The company shows strong net current assets and equity growth, reflecting good working capital management and retained earnings accumulation. However, a slight decline in fixed assets and the company’s micro size suggest limited scale and resources. The score B indicates generally sound financial health with room for cautious monitoring and growth initiatives.

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2. Key Vital Signs

Metric	2023 (£)	2022 (£)	Interpretation
Fixed Assets	9,974	14,122	Slight decrease; may indicate asset disposals or less investment in long-term resources.
Current Assets	99,555	52,118	Significant increase; healthy accumulation of cash or receivables boosting liquidity.
Current Liabilities	29,816	15,022	Increase in short-term obligations but well covered by current assets.
Net Current Assets (Working Capital)	69,739	37,096	Strong positive working capital indicates healthy short-term financial flexibility.
Total Assets Less Current Liabilities	79,713	51,218	Increase shows improved overall asset base after covering immediate debts.
Creditors (Long-term)	4,097	6,988	Reduction in longer-term liabilities is a positive sign of deleveraging.
Net Assets / Shareholders’ Funds	75,616	44,230	Growth reflects retained profits or capital injection, enhancing company’s net worth.
Average Number of Employees	1	1	Small workforce typical for micro business; limits operational scale but controls cost base.

Interpretation:
The core financial "vital signs" suggest a company with a robust liquidity position ("healthy cash flow") and increasing equity—both signs of financial vitality. The working capital is ample, meaning the company can comfortably meet short-term obligations without stress. The slight reduction in fixed assets is not immediately concerning but should be monitored.

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3. Diagnosis: Business Financial Health

• Liquidity: The company shows excellent liquidity with net current assets nearly doubling year-on-year. This is a symptom of strong operational cash management or possibly increased sales/debtors collection.

• Solvency: Net assets have increased significantly, and long-term liabilities have decreased, indicating the company is reducing reliance on debt and strengthening its financial foundation.

• Profit Retention: The rise in shareholders’ funds suggests profitable operations or additional capital injection. Since the company is micro and unaudited, exact profit details are not disclosed, but retained earnings are implied.

• Operational Scale: With only one employee (the director), the business operates on a lean model, which helps control overhead but may limit growth and diversification opportunities.

• Risk Factors: The company is not in liquidation or under distress, no overdue filings, and the director is current and controlling a majority shareholding, which points to stable governance.

Overall, the company exhibits no symptoms of financial distress and is in a stable and improving condition.

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4. Recommendations

• Maintain Working Capital Management: Continue monitoring receivables and payables to maintain liquidity; avoid overextending credit terms.

• Asset Investment: Consider reinvesting in fixed assets or technology to support potential growth and operational efficiency, as current fixed assets have declined.

• Growth Planning: Explore opportunities for scaling operations, possibly through hiring or partnerships, to increase market presence while managing costs.

• Financial Reporting: Although exempt from audit, consider voluntary audits or enhanced financial controls as the company grows to build stakeholder confidence.

• Debt Management: Keep long-term debt low or manage it prudently to avoid future solvency risks.

• Strategic Review: Periodically reassess business strategy in line with industry trends in electricity trade to ensure competitive positioning.

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