PERSPECTIVA ADVISORY LIMITED

Executive Summary

Perspectiva Advisory Limited demonstrates an initial stable financial condition typical of a new small company, with modest positive net assets and working capital. While liquidity is tight, the company is solvent and compliant with regulatory requirements. Focused efforts on cash flow management and revenue growth will be essential to enhance financial resilience and support future expansion.

PERSPECTIVA ADVISORY LIMITED - Analysis Report

Company Number: 15195407

Analysis Date: 2025-07-29 12:59 UTC

Financial Health Assessment Report for PERSPECTIVA ADVISORY LIMITED

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1. Financial Health Score: Grade C

Explanation:
As a newly incorporated small private limited company operating for just over one year, PERSPECTIVA ADVISORY LIMITED shows initial signs of financial stability but with limited scale. The company displays positive net assets and modest working capital, indicating basic operational viability. However, the very low absolute values of cash and net assets, combined with the lack of turnover or profit data, suggest the company is in an early development stage with limited financial robustness. Hence, a Grade C reflects a cautious but stable financial health status.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,135	Very low cash and current asset levels; signals limited liquidity but positive cash on hand.
Current Liabilities	622	Short-term obligations are low but significant relative to cash, requiring careful cash management.
Net Current Assets	513	Positive working capital ("healthy cash flow cushion"), but the margin is narrow.
Total Net Assets	513	Positive equity position; company is solvent but with minimal buffer against shocks.
Shareholders’ Funds	513	Equity mainly from share capital (£50) and retained earnings (£463); limited capitalization.
Employee Count	1	Single employee (director); lean operation with minimal overhead.
Company Age	~1 year	Early lifecycle stage; financial history is limited, impacting trend analysis and risk assessment.

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3. Diagnosis: What the Financial Data Reveals

• Early Stage with Initial Stability: The company is newly formed (incorporated October 2023) and has filed unaudited abridged accounts for its first financial year ending October 2024. The modest positive net assets and working capital indicate no immediate liquidity distress or insolvency symptoms.

• Low Operating Scale and Resource Base: Current assets are limited to cash (£1,135) with no reported fixed assets or receivables, implying minimal business operations or capital investment so far. The absence of turnover or profit figures in the disclosed abridged accounts suggests either very low revenue activity or early-stage setup costs.

• Liquidity is Adequate but Tight: The small positive net current assets indicate the company can meet its short-term liabilities but has little room for unexpected expenses or delayed cash inflows. This "narrow pulse" requires vigilant cash flow monitoring to avoid liquidity stress.

• Concentrated Control: The sole director and 75-100% shareholder is Mrs. Deborah Gayle Zaman, indicating centralized decision-making. This is typical for micro businesses but places responsibility for financial oversight firmly on one individual.

• Regulatory Compliance: The company is current with filings (accounts and confirmation statement not overdue), signaling good administrative health and governance practices.

• No Audit Required: As a small company, it has taken advantage of audit exemptions, which is standard but limits external assurance on financial accuracy.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Cash Flow Management:
   Monitor cash inflows and outflows closely. Establish a rolling cash flow forecast to anticipate shortfalls and manage payables proactively. Maintaining a "healthy cash flow" is vital given the tight liquidity buffer.

2. Focus on Revenue Generation and Profitability:
   Increase efforts to generate turnover and establish a reliable income stream. Early identification of profitable service lines in management consultancy will strengthen financial resilience.

3. Build Financial Reserves:
   Aim to grow net assets and working capital gradually. Retaining profits or injecting additional capital can create a buffer to absorb operational shocks or fund growth initiatives.

4. Consider Formal Financial Reporting:
   As the business grows, consider preparing full accounts including profit and loss statements to gain better insight into operational performance and cost control.

5. Maintain Good Corporate Governance:
   Continue timely filing of statutory documents and consider engaging a financial advisor or accountant for periodic reviews to ensure compliance and strategic financial planning.

6. Plan for Growth and Scalability:
   Develop a business plan with financial milestones. As client base and turnover increase, ensure systems are in place to handle increased accounting complexity and regulatory requirements.

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Summary

PERSPECTIVA ADVISORY LIMITED is a micro private limited company in its first year with a positive but modest financial position. The company has sufficient liquidity to meet immediate obligations but operates with a narrow financial margin. Continued focus on cash flow management, revenue growth, and financial reporting will be crucial to strengthen financial health and support business development.