Company Number: 13130274

Analysis Date: 2025-07-20 12:59 UTC

Financial Health Assessment for NTT Building Consultancy Limited

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1. Financial Health Score: B+

Explanation:
NTT Building Consultancy Limited demonstrates solid financial health with strong liquidity, positive net assets, and consistent growth in shareholder funds. The company shows a healthy cash flow position and manageable liabilities. Minor areas for attention include the relatively high proportion of debtors classified as "other debtors" which may require monitoring. Overall, the business exhibits good financial vitality typical of a growing small private limited company.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	293,597	Healthy pool of assets available to meet short-term obligations
Cash at Bank	113,390	Strong cash reserves indicating good liquidity
Debtors	180,207	High level of receivables, mostly "other debtors" - watch closely for collectability
Current Liabilities	52,497	Low compared to current assets, indicating good working capital
Net Current Assets	241,100	Very positive working capital; business can comfortably cover short-term debts
Net Assets	259,585	Solid equity base indicating business value
Shareholders’ Funds	259,585	Equity fully supports assets, signaling financial stability
Tangible Fixed Assets	22,821	Modest investment in long-term assets, appropriate for service industry
Provisions for Liabilities	4,336	Low provisions, implying limited anticipated future liabilities

Additional Notes:

• The company’s share capital is minimal (£100), typical for small private companies; the bulk of equity is retained earnings.
• Current assets have increased substantially from prior years, suggesting growth and improved liquidity.
• Creditors have decreased year on year, indicating improved payment terms or management.

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3. Diagnosis: Financial Health Status and Symptoms

Healthy Cash Flow and Liquidity:
The company’s cash position has nearly doubled from £61k to £113k, a vital sign indicating robust cash flow management. The net current assets of £241k provide a strong buffer against short-term liabilities, showing no symptoms of liquidity distress.

Asset Management:
The tangible fixed assets have decreased slightly but remain consistent, with depreciation charges reflecting normal asset usage patterns. This indicates an asset base that supports operations without overextension.

Receivables Profile:
Debtors have increased notably, with a significant portion classified as “other debtors” rather than trade debtors. This could be payments due from related parties, prepayments, or other non-trade receivables. While not immediately alarming, this is a symptom to monitor for potential collectability issues or cash flow timing risks.

Liabilities and Provisions:
Current liabilities have decreased, and provisions for liabilities are low, indicating the company is not currently burdened by significant debts or anticipated liabilities. This is a positive indicator of financial stability.

Profitability Insight:
While the company has not filed a statement of comprehensive income (common for small companies), the steady increase in retained earnings and shareholders’ funds from £63k in 2021 to £259k in 2024 signals consistent profitability and retained profits fueling growth.

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4. Recommendations

1. Monitor Debtors Closely:
The large amount in “other debtors” (£173k) should be reviewed regularly to ensure timely collections and assess any risk of bad debts. Implementing tighter credit controls or clarifying the nature of these receivables will help maintain healthy cash flow.

2. Maintain Strong Cash Reserves:
Continue to preserve a healthy cash buffer to manage unexpected expenses or fluctuations in working capital needs, especially in a consultancy business where payment timings can vary.

3. Review Provisions Annually:
Though currently low, regularly evaluate provisions for liabilities to ensure all potential risks are adequately covered, avoiding surprises that could affect financial stability.

4. Consider Strategic Asset Management:
Evaluate the fixed asset base to ensure it aligns with business needs without tying up excessive capital. If underutilized, consider asset disposals or re-investments to improve operational efficiency.

5. Financial Reporting and Forecasting:
Maintain rigorous financial reporting and forecasting to anticipate future cash flow needs and growth opportunities. This will help in proactive financial management and decision-making.

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Medical Analogy Summary:

NTT Building Consultancy Limited shows signs of a financially "fit" company with a strong pulse (cash reserves) and healthy vital signs (net assets and working capital). The "symptoms" of elevated receivables warrant monitoring, akin to a patient keeping an eye on a minor inflammation before it becomes serious. With ongoing vigilance and good management, the prognosis for continued financial health is positive.

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