OFF THE GROUND SOLUTIONS LTD

Executive Summary

OFF THE GROUND SOLUTIONS LTD exhibits strong financial health characterized by steady net asset growth, robust liquidity, and a lean operating model consistent with its management consultancy activities. The company’s positive equity and working capital position suggest a well-managed business with a low risk of financial distress. To maintain and improve financial wellness, the company should focus on sustaining liquidity, planning for measured growth, and managing operational risks related to director dependency.

OFF THE GROUND SOLUTIONS LTD - Analysis Report

Company Number: 12404300

Analysis Date: 2025-07-29 17:51 UTC

Financial Health Assessment of OFF THE GROUND SOLUTIONS LTD

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1. Financial Health Score: A-

Explanation:
OFF THE GROUND SOLUTIONS LTD demonstrates a robust financial position for a micro-entity with steady growth in net assets and working capital over the past five years. The company maintains a strong current asset base relative to liabilities, indicating healthy liquidity. The slight deduction from a perfect A grade reflects the limited scale typical of micro companies and relatively modest fixed assets.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£4,288	Small but consistent long-term investment.
Current Assets	£104,140	Healthy cash and receivables supporting operations.
Current Liabilities	£22,428	Manageable short-term obligations.
Net Current Assets (Working Capital)	£81,712	Strong positive working capital; "healthy cash flow".
Total Assets Less Current Liabilities	£86,000	Solid net asset base indicating financial stability.
Shareholders’ Funds (Equity)	£86,000	Entirely positive equity; no signs of distress.
Growth in Net Assets (2020-2024)	From £25,161 to £86,000	Steady accumulation of value and retained earnings.
Employee Count	1	Very lean operation, low overheads.

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3. Diagnosis: Financial Health Overview

• Liquidity:
  The company exhibits excellent liquidity with net current assets substantially exceeding current liabilities. This "healthy cash flow" situation suggests the business can comfortably meet its short-term obligations without stress.

• Solvency:
  With shareholders’ funds of £86,000 and no indication of long-term debt, the company appears solvent and well-capitalized for its scale. The consistent equity growth over five years signals sound retention of earnings or capital injection, reinforcing financial resilience.

• Asset Base:
  Fixed assets are minimal but stable, appropriate for a management consultancy primarily reliant on human capital rather than heavy equipment or property. The asset structure aligns with the industry SIC code 70229, which focuses on consultancy activities.

• Operations:
  Operating with a single employee (the director), the company shows a lean structure, reducing overhead risks. This is common in start-ups or micro-entities and can be advantageous for flexibility but may limit growth potential unless scale increases.

• Risk Factors:
  No overdue filings or indications of director misconduct are present. The sole director holds full control, which consolidates decision-making but could be a single point of dependency risk.

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4. Recommendations: Path to Enhanced Financial Wellness

• Maintain Strong Liquidity:
  Continue managing working capital prudently to preserve the current healthy liquidity position. Monitor debtor collections and creditor payments closely to avoid cash flow bottlenecks.

• Diversify Asset Base Gradually:
  Consider incremental investments in intangible assets such as proprietary methodologies, software, or training that could enhance service offerings and competitive edge.

• Plan for Growth:
  Explore opportunities to expand beyond a single-employee model when strategically beneficial. Hiring or subcontracting could increase capacity and revenue but requires careful cost-benefit analysis.

• Risk Management:
  Develop contingency plans to mitigate risks associated with director dependency, such as documenting key processes and considering succession or delegation strategies.

• Regular Financial Review:
  Implement ongoing financial performance reviews to detect early symptoms of distress, such as declining working capital or increasing liabilities, to ensure timely corrective action.

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