NTH ADVISORY LTD

Executive Summary

NTH Advisory Ltd exhibits a solid financial foundation with positive liquidity and equity for a micro-entity in its first full year. The company’s financial "vital signs" suggest healthy cash flow management and no immediate distress signals. To strengthen its financial health, focusing on cash reserves, client diversification, and strategic planning will be key as the business scales.

NTH ADVISORY LTD - Analysis Report

Company Number: 15050178

Analysis Date: 2025-07-29 20:34 UTC

Financial Health Assessment Report for NTH ADVISORY LTD

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1. Financial Health Score: B

Explanation:
NTH Advisory Ltd demonstrates a sound financial footing for a newly incorporated micro-entity. With positive net current assets and net assets, the company shows early signs of financial stability. However, as a micro entity with limited history and modest asset base, there is room to improve liquidity and diversify assets to strengthen resilience.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£2,040	Minimal long-term investment; typical in early-stage consultancy.
Current Assets	£24,759	Healthy short-term resources; indicates availability of cash or receivables.
Current Liabilities	£8,377	Debts due within one year; manageable relative to current assets.
Net Current Assets (Working Capital)	£16,382	Positive working capital—a vital sign of liquidity and operational smoothness.
Net Assets (Shareholders' Funds)	£18,422	Positive equity base; reflects retained earnings or initial capital.
Average Number of Employees	1	Small, lean operation consistent with micro-entity status.

Interpretation:
The company’s "vital signs" show a "healthy pulse" in liquidity and capital structure. Positive working capital indicates the company can meet short-term obligations without stress, a good sign of operational health. The asset base is lean but sufficient for the consultancy nature of the business.

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3. Diagnosis

Financial Condition:
NTH Advisory Ltd is in an early, stable phase of its corporate life cycle. The company has no overdue filings and complies with statutory requirements on time, reflecting good governance and administrative health. The balance sheet shows no signs of distress such as negative net assets or excessive short-term liabilities.

The company’s main financial "symptom" is its small scale and limited asset base, which is typical for a micro consultancy firm. The reliance on current assets and low fixed assets is normal here, but it also means there is limited buffer against unexpected expenses or downturns.

Underlying Business Health:

• The positive net current assets imply the company is managing its cash flow well, avoiding liquidity crunches.
• The shareholders’ equity matches net assets, indicating no hidden debts or off-balance-sheet liabilities.
• The company is controlled by two directors/shareholders with equal influence, which can promote balanced decision-making.
• The business classification as "management consultancy activities other than financial management" suggests a service-based model with likely low capital expenditure.

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4. Recommendations

To enhance financial wellness and future-proof the company, consider the following steps:

• Build Cash Reserves: Continue to monitor and increase cash or equivalents to create a financial safety net for unforeseen events.
• Diversify Client Base: To reduce revenue concentration risk, gradually expand client portfolio and service offerings.
• Invest in Fixed Assets if Needed: Evaluate whether modest investments in technology or office equipment could improve operational efficiency without overextending capital.
• Maintain Timely Compliance: Keep up the excellent record of on-time filing and governance to avoid penalties and reputational risk.
• Prepare Forecasts and Budgets: Develop rolling financial forecasts to anticipate cash flow needs and plan investments strategically.
• Consider Professional Advice: Engage accountants or financial advisors periodically to review tax efficiency and financial structure as the company grows.

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