QUO VADIS CCS LIMITED

Executive Summary

QUO VADIS CCS LIMITED shows a solid financial foundation with positive net assets and good liquidity for a young startup. The company’s balance sheet "vital signs" reveal a healthy cash position and manageable short-term obligations, though careful management of debtor collections and director loans is essential. With attention to cash flow and formalising internal financing, the company is well placed to sustain growth and maintain financial wellness.

QUO VADIS CCS LIMITED - Analysis Report

Company Number: 14685379

Analysis Date: 2025-07-20 17:56 UTC

Financial Health Assessment of QUO VADIS CCS LIMITED (As at 31 March 2024)

---

1. Financial Health Score: B

Explanation:
QUO VADIS CCS LIMITED exhibits a generally healthy financial position for a newly incorporated small private limited company. It holds a positive net asset base and a strong net current asset position, indicating good short-term liquidity. However, some caution is warranted due to the presence of director loans without defined repayment terms and relatively high current liabilities compared to cash balances. The company’s financial vital signs suggest solid early-stage health with manageable risks.

---

2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	168,577	Adequate short-term resources available
Cash at Bank and in Hand	90,972	Healthy cash position to meet obligations
Debtors	77,605	Significant receivables; cash conversion timing important
Current Liabilities	87,016	Obligations due within one year; moderate level
Net Current Assets	81,561	Positive working capital - good liquidity buffer
Net Assets (Equity)	83,503	Positive equity base indicates solvency
Called-up Share Capital	100	Minimal initial equity investment
Profit and Loss Reserve	83,386	Retained earnings contributing to equity
Number of Employees	4	Small team consistent with company size

Interpretation:

• Liquidity ("Healthy cash flow"): The company holds nearly £91k in cash, enough to cover roughly 1.04 times its current liabilities (£87k), signaling solid short-term financial strength.
• Working Capital ("Vital signs stable"): Positive net current assets of £81.6k indicate the business can comfortably meet short-term debts without stress.
• Receivables ("Symptom to watch"): Debtors of £77.6k are high relative to cash; efficient collection is critical to sustain liquidity.
• Director Loans ("Symptom of internal financing"): £4,877 owed to directors lacks formal repayment terms, indicating reliance on related party funding which should be monitored to avoid future cash flow issues.
• Equity Position ("Overall health"): Net assets of £83.5k shows the company is solvent and has a positive equity buffer despite being recently formed.

---

3. Diagnosis

QUO VADIS CCS LIMITED is in the early stages of development, having operated for just over a year. The company demonstrates signs of financial wellness typical of a small, growing IT and telecommunications service business. The balance sheet "vital signs" indicate a stable financial foundation:

• Liquidity is strong with cash reserves adequate to meet current liabilities, reflecting a "healthy cash flow system."
• Working capital is positive, suggesting the company has funds available to support daily operations without distress.
• The relatively high debtors balance may indicate longer credit terms or potential delays in cash collection, which requires active management to avoid liquidity "symptoms" such as cash flow tightness.
• The presence of director loans without clear terms suggests a mild symptom of dependence on insider funding, which while common in startups, needs formalisation to prevent financial uncertainty.
• The absence of audit requirements and the small company regime application reflect the company’s size and complexity, which currently aligns with its financial structure.

No major "symptoms of distress" such as negative equity, overdue filings, or insolvency indicators are present. The company’s operations appear to be on a sound footing, but ongoing cash and receivables management will be key to maintaining financial health.

---

4. Recommendations

To improve and maintain financial wellness, the following targeted actions are advised:

• Enhance Debtor Collection Processes:
  Implement stricter credit control and prompt invoicing procedures to reduce outstanding receivables and improve cash conversion cycles. This will strengthen liquidity and reduce reliance on director loans.

• Formalise Director Loan Agreements:
  Establish clear repayment terms or convert director loans into equity to avoid ambiguity and potential cash flow risks. Documenting these loans also improves transparency for stakeholders.

• Monitor and Manage Current Liabilities:
  Keep a close watch on tax and social security liabilities (£62k), ensuring timely payments to prevent penalties and maintain supplier confidence.

• Build Capital Reserves:
  Consider strategies to increase share capital or retained earnings through reinvestment of profits or capital injections to expand the equity base and provide a buffer against future uncertainties.

• Regular Financial Review:
  Conduct quarterly financial health "check-ups" focusing on liquidity ratios, working capital trends, and cash flow forecasts to detect early symptoms of financial strain.

• Plan for Growth:
  Given the company’s industry (IT and telecommunications services), investing in technology and talent could support revenue growth, provided financial resources are managed prudently.

---