QUANTAIM LIMITED

Executive Summary

QUANTAIM LIMITED maintains a positive net asset position but shows significant declines in liquidity and shareholder funds over the last year, indicating emerging financial stress. Immediate focus on cash flow management and close financial monitoring is essential to stabilize the business. With prudent actions, the company can strengthen its financial health and avoid more serious difficulties in the future.

QUANTAIM LIMITED - Analysis Report

Company Number: 14679375

Analysis Date: 2025-07-29 12:32 UTC

Financial Health Assessment for QUANTAIM LIMITED

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1. Financial Health Score: C

Explanation:
QUANTAIM LIMITED shows a moderate financial position with positive net assets but a significant reduction in working capital and total net assets compared to previous years. The company is still solvent, but signs of stress are emerging, such as declining current assets and net assets over two years, indicating the need for close monitoring and corrective action to avoid future liquidity or solvency issues.

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2. Key Vital Signs

Metric	2025 (Latest)	2024	Interpretation
Fixed Assets	£14,266	£3,282	Increase suggests investment in long-term assets, potentially positive for capacity or operations.
Current Assets	£13,311	£44,697	Sharp decrease signals potential liquidity tightening; less cash/debtors available to meet short-term obligations.
Current Liabilities	£8,611	£16,107	Decreased liabilities reduces short-term burden, but less than drop in current assets.
Net Current Assets (Working Capital)	£5,115	£28,715	Significant reduction (over 80%) in working capital implies weaker short-term financial health; "symptom of distress."
Total Assets Less Current Liabilities	£19,381	£31,997	Overall net asset base declined substantially, indicating erosion of equity buffer.
Net Assets / Shareholders Funds	£19,381	£31,997	Decline in net assets reflects weakening capital structure.
Director Loan	£1,989	£0	Loan from director is interest-free and repayable on demand; could be a temporary liquidity support but also a liability.

Vital Signs Interpretation:

• The company’s working capital is still positive, signaling it can meet short-term debts but with much less cushion than before.
• The sharp decline in current assets (likely cash or receivables) is concerning and may indicate cash flow challenges or reduced business activity.
• Increase in fixed assets may be a positive investment but should be balanced against liquidity.
• The director loan shows internal financial support but reliance on this may be a warning sign.
• Overall, these vital signs indicate a financial condition that is stable but fragile, requiring careful cash management.

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3. Diagnosis

Overall Financial Condition:
QUANTAIM LIMITED is operating with a moderate financial health profile. The company remains solvent with positive net assets and working capital, which are essential for ongoing operations. However, the substantial drop in net current assets and net assets between 2024 and 2025 points to underlying financial strain—akin to "early symptoms of distress" in a patient.

The reduction in current assets suggests possible collection issues, declining sales, or increased cash burn, while the director loan indicates the company may have needed additional internal funding support. The increase in fixed assets could reflect investments that might improve future performance but also tie up cash.

The company is still young (incorporated 2023) and classified as a micro entity, so fluctuations in financial metrics can be expected. The absence of audit (permitted under micro entity rules) means less external verification of financial robustness.

In summary, QUANTAIM LIMITED’s financial "vital signs" show it is still "breathing" and operational, but the sharp declines are red flags that need prompt attention to avoid progressing to financial "illness" such as liquidity crisis or insolvency.

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4. Recommendations

To improve financial wellness and strengthen the company’s financial health, the following actions are advised:

1. Enhance Cash Flow Management

   • Monitor accounts receivable closely to reduce overdue payments and improve cash inflows.
   • Consider negotiating better payment terms with suppliers to stretch payable periods without harming relationships.
   • Avoid unnecessary capital expenditure that further strains cash reserves until liquidity improves.

2. Regular Financial Monitoring

   • Implement monthly or quarterly financial reviews focusing on liquidity ratios and cash flow forecasts.
   • Track director loans and ensure clear repayment plans or convert such loans to equity if appropriate.

3. Strategic Investment Review

   • Review the increase in fixed assets to ensure investments align with business growth potential and do not impair liquidity.
   • Consider whether any fixed assets can be monetized if urgent cash is required.

4. Explore Additional Funding Options

   • If cash flow pressures persist, investigate external financing (e.g., overdraft, invoice finance) to provide a buffer.
   • Engage with professional advisors early if financial difficulties intensify to avoid severe distress.

5. Strengthen Governance and Reporting

   • Maintain timely and accurate filings with Companies House to avoid penalties and maintain stakeholder confidence.

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