TANGO CONSULTANCY LIMITED

Executive Summary

TANGO CONSULTANCY LIMITED exhibits stable but modest financial health typical of a micro-entity in its early years, with positive working capital and growing equity. While the liquidity position is currently adequate, the narrow buffer and small capital base suggest cautious management is needed. Strengthening cash reserves and broadening business activities will enhance resilience and support sustainable growth.

TANGO CONSULTANCY LIMITED - Analysis Report

Company Number: 13108311

Analysis Date: 2025-07-20 14:20 UTC

Financial Health Assessment Report for TANGO CONSULTANCY LIMITED

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1. Financial Health Score: B

Explanation:
TANGO CONSULTANCY LIMITED shows solid foundational financial health for a micro-entity in its early years. The company maintains positive net current assets and net assets, indicating a stable liquidity position and a modest equity base. However, the scale of operations is small, and the margins of safety (working capital buffer) are narrow, suggesting some vulnerability to unexpected shocks. The absence of audit and limited financial disclosures typical of micro-entities slightly constrain a more definitive grade.

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2. Key Vital Signs

Vital Sign	2024 Value	Interpretation
Current Assets	£40,684	Healthy increase year-on-year, indicating improved short-term asset base, such as cash or receivables.
Current Liabilities	£36,284	Also increased, but current assets still exceed liabilities, maintaining liquidity.
Net Current Assets	£4,400	Positive working capital ("healthy cash flow buffer"), but modest, so there's limited room for error.
Net Assets (Equity)	£3,275	Increasing equity base shows retained earnings or capital injection; solid foundation for growth.
Employee Count	1	Very small scale operation; risks and opportunities tied closely to key individual(s).
Share Capital	£100	Minimal capital investment; typical for micro companies but limits financial flexibility.
Audit Exemption	Yes	Being a micro-entity, accounts are unaudited, which limits external assurance on financial accuracy.
Business Status	Active	No signs of distress such as liquidation or administration.

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3. Diagnosis: Financial Symptoms and Underlying Business Health

The company demonstrates several "signs of vitality," such as growing current assets and net assets, reflecting either increased business activity or improved management of receivables and cash. The positive net current assets confirm the company can meet its short-term obligations without distress, akin to a patient with a stable pulse and blood pressure.

However, the narrow margin between current assets and liabilities (net current assets of £4,400) suggests the company has limited financial reserves to absorb unexpected expenses or downturns — similar to a patient with controlled but borderline vital signs who needs monitoring.

The minimal share capital and single-employee structure indicate a lean operation, likely driven by the director(s) themselves. This can be efficient but may also expose the business to "single point of failure" risk, where loss or incapacity of key personnel could severely impact operations.

The absence of audit and limited detailed financial disclosures (common for micro-entities) means the financial "symptoms" are based on standard filings without deep diagnostic data such as profitability, cash flow statements, or debt structure details. This limits detection of hidden issues like profitability erosion or looming liabilities.

The company’s industry classification (printing not elsewhere classified) suggests a niche or specialized service, which can be a double-edged sword — potential for steady demand but also vulnerability to market shifts or technological obsolescence.

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4. Recommendations: Steps to Improve Financial Wellness

• Build a Larger Working Capital Buffer: Aim to increase net current assets through improved cash management, quicker collections, or controlled payables. This strengthens the company’s ability to handle unexpected expenses and smooths operational cash flow.

• Enhance Capital Base: Consider modest capital injections or retained earnings accumulation to improve equity and financial resilience. This provides a stronger cushion against future shocks and supports growth investments.

• Monitor and Diversify Revenue Streams: Given the small scale and niche market, explore diversification or new client acquisition to reduce dependency on limited customers or market segments.

• Prepare for Audit or Review: As the company grows beyond micro thresholds, preparing for audit or independent financial review will improve stakeholder confidence and uncover operational efficiencies or risks.

• Document Strategic Plans: Develop clear short and medium-term business plans, including contingency strategies, to navigate market fluctuations and technological changes in the printing sector.

• Maintain Regulatory Compliance: Ensure timely filing of accounts and confirmation statements to avoid penalties and preserve good standing.

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