TB CONSULTANCY LTD

Executive Summary

TB CONSULTANCY LTD demonstrates a strong and improving financial condition with healthy liquidity and positive equity growth, typical of a stable micro-entity consultancy. The company’s financial "vital signs" show no distress symptoms, though asset diversification and profit retention could enhance resilience. Continued prudent financial management and cautious growth planning are recommended to sustain this positive trajectory.

TB CONSULTANCY LTD - Analysis Report

Company Number: 13828279

Analysis Date: 2025-07-29 18:01 UTC

Financial Health Assessment: TB CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
TB CONSULTANCY LTD exhibits signs of solid financial stability and growth with a strong liquidity position and positive net assets. However, as a micro-entity with no fixed assets and limited operational scale, the company’s financial health is good but still developing. The absence of fixed assets and reliance on current assets with modest liabilities suggests a low-risk profile but limited asset diversification.

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2. Key Vital Signs

Metric	2025 Value (£)	Interpretation
Current Assets	70,976	Healthy increase from prior years, indicating improved cash or receivables available.
Current Liabilities	31,100	Moderate short-term obligations, well covered by current assets (strong liquidity).
Net Current Assets (Working Capital)	40,076	Healthy positive working capital, indicating ability to meet short-term liabilities comfortably.
Net Assets / Shareholders’ Funds	40,076	Positive equity position, reflecting retained earnings or capital contributions.
Fixed Assets	0	No long-term asset base, typical for service consultancy but limits asset leverage.
Employees	2	Small team size consistent with micro-entity status, manageable overheads.

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3. Diagnosis: Financial Vitality and Underlying Health

• Healthy Cash Flow Indicator:
  The company’s substantial increase in current assets (from £2,649 in 2024 to £70,976 in 2025) signals a strong inflow of cash or receivables, a positive symptom of operational success and effective working capital management.

• Low Financial Distress Signals:
  Current liabilities have increased but remain well covered by current assets, resulting in a strong net current asset position (£40,076). No signs of liquidity strain or overdue filings, which are common distress symptoms, are present.

• Asset Structure:
  The absence of fixed assets is typical for consultancy firms focused on intellectual capital rather than physical assets. While this limits collateral value for borrowing, it also reduces depreciation costs and fixed overheads.

• Equity Growth:
  Shareholders’ funds have increased from £2,153 to £40,076 within the last financial year, indicating capital injections or retention of profits, strengthening the company’s financial base.

• Small Scale but Stable:
  With only two employees and micro-entity status, the business is in an early growth phase but shows a stable financial foundation without operational overextension.

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4. Recommendations: Prescriptions to Enhance Financial Wellness

• Maintain Strong Liquidity Management:
  Continue to monitor and manage receivables and payables to sustain healthy cash flow, avoiding symptoms of cash crunch.

• Consider Asset Diversification:
  While fixed assets are not essential now, explore investments in software, technology, or intellectual property rights that could enhance operational efficiency or market value.

• Build Profit Reserves:
  Aim to retain earnings within the business to build a buffer against future uncertainties or investment opportunities.

• Plan for Growth:
  With current healthy finances, consider scaling operations cautiously by hiring or expanding service offerings to improve revenue streams.

• Regular Financial Monitoring:
  Implement periodic reviews of vital signs such as working capital, net assets, and liquidity ratios to detect early signs of financial distress.

• Compliance Vigilance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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