NUMERICAL DYNAMICS LIMITED

Executive Summary

NUMERICAL DYNAMICS LIMITED shows strong financial health with a solid liquidity position, minimal liabilities, and stable equity, typical of a well-managed micro entity in consultancy and financial management. The company operates with low overhead and maintains compliance with regulatory requirements, indicating good financial discipline. Continued monitoring and prudent financial planning are advised to sustain this healthy status and support potential growth.

NUMERICAL DYNAMICS LIMITED - Analysis Report

Company Number: 12932827

Analysis Date: 2025-07-29 14:46 UTC

Financial Health Assessment Report
Company: NUMERICAL DYNAMICS LIMITED
Assessment Date: 2024-10-31

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1. Financial Health Score: A-

Explanation:
NUMERICAL DYNAMICS LIMITED demonstrates a strong and stable financial position typical of a healthy micro entity. The company maintains a very solid liquidity position, evidenced by consistently high net current assets and minimal current liabilities, suggesting excellent short-term financial resilience. The absence of employees and the small scale of operations reduce complexity and financial strain. The slight decline in current assets from the prior year is worth monitoring but does not currently indicate distress.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	85,599	Good cash and receivables base to cover short-term obligations
Current Liabilities	5,107	Very low short-term debts, indicating low pressure on liquidity
Net Current Assets (Working Capital)	80,492	Strong positive working capital — a "healthy cash flow" sign
Net Assets / Shareholders Funds	80,492	Solid equity foundation with no apparent debt burden
Employee Count	0	No payroll obligations, reducing fixed costs and financial risk
Account Category	Micro	Simplified filing, small operational scale
Filing Status	Up-to-date	Compliance with filing deadlines, no regulatory "symptoms"

Interpretation:
The vital signs reflect a company that is not under financial stress. The working capital is ample, indicating the company has funds readily available to meet immediate liabilities. The consistent net asset base suggests retained earnings or capital injections have been preserved. No employees imply low operating overhead, which is typical for consultancy or management-focused companies.

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3. Diagnosis

The financial "symptoms" indicate that NUMERICAL DYNAMICS LIMITED is in a "healthy" state. The company’s balance sheet shows strong liquidity and no reliance on short-term borrowing, which are positive indicators of financial robustness. The absence of current liabilities beyond a minor amount suggests no immediate financial distress or creditor pressure. The stable net assets over recent years confirm that the company maintains its financial "vitality" without erosion of equity.

The lack of employees and the company's SIC codes (Financial Management and IT Consultancy) suggest a low overhead, knowledge-based business model that likely relies on the director’s expertise rather than extensive operational infrastructure. This setup typically generates predictable manageable cash flows, which aligns with the observed financial stability.

No red flags such as overdue filings, large liabilities, or significant fluctuations in financial metrics have been detected. The company is well-positioned for sustaining its operations with its current financial resources.

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4. Recommendations

While the company is currently financially healthy, the following actions can help maintain and improve its financial wellness:

• Monitor Cash Reserves: Although current assets decreased slightly from the previous year, keep a close watch to ensure liquidity remains robust, especially if the business plans to scale or take on new projects.

• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with regulatory bodies.

• Plan for Growth: If growth is anticipated, consider strategies for capital injection or leveraging assets to fund expansion without compromising liquidity.

• Diversify Income Streams: As a consultancy/financial management firm, diversifying client base or service offerings could reduce revenue volatility risk.

• Consider Formal Financial Controls: Even as a micro entity, establishing formal cash flow forecasting and budgeting processes can help detect early "symptoms" of financial stress.

• Regular Financial Review: Schedule periodic financial health check-ups to track key metrics and respond proactively to any emerging issues.

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