QUANTUM TECHNOLOGIES ASSOCIATES LIMITED

Executive Summary

Quantum Technologies Associates Limited shows a healthy financial foundation typical of a micro-entity in its first year, with positive net assets and working capital indicating good short-term financial stability. However, relatively high current liabilities suggest liquidity should be closely monitored to avoid cash flow distress. With prudent management and growth planning, the company is well positioned to strengthen its financial wellness as it expands.

QUANTUM TECHNOLOGIES ASSOCIATES LIMITED - Analysis Report

Company Number: 15103643

Analysis Date: 2025-07-20 11:51 UTC

Financial Health Assessment – Quantum Technologies Associates Limited

---

1. Financial Health Score: B

Explanation:
Quantum Technologies Associates Limited demonstrates a solid financial foundation for a micro-entity in its first year of operation. The company maintains positive net current assets and net assets, indicating a healthy buffer against short-term liabilities. However, the relatively high current liabilities compared to current assets and the very early stage of the business suggest room for improvement in liquidity management and capital strengthening. The absence of audit requirements and a single employee structure are typical for micro-companies but limit detailed external validation.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	3,164	Modest investment in long-term assets, typical for a start-up or R&D focused company.
Current Assets	142,726	Healthy level of short-term assets, primarily cash or receivables, supporting operational needs.
Current Liabilities	108,087	Significant short-term obligations; careful management needed to avoid liquidity stress.
Net Current Assets	35,277	Positive working capital ("healthy cash flow buffer"), indicating ability to cover short-term debts.
Total Assets Less Current Liabilities	38,441	Indicates overall asset coverage beyond immediate liabilities, a sign of financial stability.
Net Assets / Shareholders Funds	36,941	Equity base reflecting retained earnings or initial capital; solid for a micro company.
Employees	1	Single-employee structure (likely the director), common in micro entities in R&D fields.

---

3. Diagnosis

Quantum Technologies Associates Limited is in the early "growth and establishment" phase typical of innovative startups, particularly those focused on research and development (SIC 72190) and IT consultancy (SIC 62020). The financial "vital signs" show a company maintaining "healthy cash flow" with positive net current assets, which is encouraging for meeting short-term obligations without resorting to external funding immediately.

However, the relatively high current liabilities relative to current assets (approx. 76% of current assets) are a "symptom of potential liquidity strain" if incoming cash flow slows or if liabilities mature faster than expected. The net assets position is positive, indicating the company has a good equity cushion to absorb shocks, but with only one employee and no audit requirement, the operational scale is small and possibly dependent on limited revenue streams or initial funding.

The director holds full control of the company, which can simplify decision-making but also concentrates risk and responsibility. The fact that the company is not overdue on filings and has met compliance deadlines indicates good governance practices at this stage.

---

4. Recommendations

1. Liquidity Monitoring:
   Maintain rigorous cash flow forecasting to ensure current liabilities can be met as they fall due. Building a cash reserve or securing a credit facility could mitigate risks of liquidity stress.

2. Revenue Diversification:
   Given the research and IT consultancy focus, explore multiple revenue streams or client engagements to reduce dependency risk and improve cash inflows.

3. Cost Control:
   Keep tight control on expenses, especially operational costs related to R&D and consultancy activities, to preserve working capital.

4. Governance and Compliance:
   Continue timely filings and consider voluntary audits or reviews over time to enhance credibility as the business grows and seeks external investment.

5. Growth Planning:
   As the company matures, consider adding skilled staff or contractors to expand capacity, along with investing in fixed assets that can support scalability.

6. Financial Reporting:
   Even as a micro entity, maintain detailed internal accounting records and consider financial KPIs beyond the statutory minimum to better track business health and support decision-making.

---