TDG HEALTH CONSULTING LIMITED

Executive Summary

TDG Health Consulting Limited is a micro-business operating with limited capital and negative working capital, indicating liquidity challenges. The company must focus on improving cash flow and reducing short-term liabilities to stabilize its financial health. With targeted actions, the company can improve its resilience and position for sustainable growth.

TDG HEALTH CONSULTING LIMITED - Analysis Report

Company Number: 14672946

Analysis Date: 2025-07-29 13:54 UTC

Certainly, let’s proceed with a comprehensive financial health assessment of TDG HEALTH CONSULTING LIMITED, treating the company’s financial data as vital signs to evaluate its overall wellness.

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1. Financial Health Score: C

Explanation:
The company shows signs of operational activity with positive net assets but also exhibits symptoms of liquidity strain and working capital challenges. The financial position is stable but fragile, warranting close monitoring and corrective actions to improve cash flow and reduce liabilities.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Current Assets	£20,743	Assets likely to convert to cash within a year
Cash on Hand	£209	Very low cash reserves indicate tight liquidity
Debtors	£20,534	High amount tied up in receivables; potential cash flow delay
Current Liabilities	£22,760	Short-term obligations exceeding current assets
Net Current Assets (Working Capital)	-£2,017	Negative value signals liquidity stress ("symptom of distress")
Net Assets (Equity)	£171	Positive but minimal equity base; thin capital buffer
Share Capital	£100	Small initial capital; typical for a young company
Number of Employees	1	Micro-business scale, low overheads
Tangible Fixed Assets (Net)	£2,188	Modest investment in equipment, increasing year-on-year

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3. Diagnosis

• Liquidity and Cash Flow:
  The company’s "heartbeat" is its cash flow, which currently appears weak. Cash reserves of only £209 against current liabilities of £22,760 represent a "low pulse" and risk inability to meet short-term debts on time. The high level of debtors (£20,534) indicates that cash is "stuck" in unpaid invoices, delaying liquidity.

• Working Capital Deficiency:
  Negative net current assets (-£2,017) reveal the company is operating with "working capital anemia," meaning it does not have enough short-term assets to cover short-term liabilities. This is a critical symptom that could lead to financial strain.

• Equity and Capital Structure:
  The shareholder funds of £171 are positive but very minimal, reflecting the company’s early stage and limited retained earnings. This thin capital base provides little cushion against financial shocks.

• Profitability and Growth:
  While profit and loss details are unavailable (due to filing exemption), the slight increase in fixed assets and stable debtor levels suggest some operational activity and investment. However, the lack of cash accumulation and persistent current liabilities imply the business may be experiencing a slow conversion of sales into cash profit.

• Operational Scale:
  With only one employee and small capital, the business is a micro-enterprise, which means financial flexibility is limited and must be managed carefully.

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4. Recommendations

• Improve Cash Flow Management:
  Accelerate collection of outstanding invoices to convert debtors into cash faster. Consider stricter credit control policies or early payment incentives.

• Increase Cash Reserves:
  Build up a cash buffer to provide a healthy "heartbeat" that can sustain short-term obligations without stress.

• Reduce Current Liabilities:
  Negotiate payment terms with creditors or restructure short-term debt to ease liquidity pressures.

• Monitor Working Capital Closely:
  Regularly track current assets versus liabilities to detect worsening liquidity before it becomes critical.

• Explore Capital Injection:
  Consider increasing share capital or securing a small business loan to strengthen equity and liquidity.

• Maintain Expense Discipline:
  Keep operational costs low to prevent cash outflow from exceeding inflow.

• Prepare for Growth Strategically:
  As the business matures, focus on profitability and cash generation rather than just turnover growth.

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Medical Analogy Summary

TDG HEALTH CONSULTING LIMITED shows signs of a "patient" with a stable but weak cardiovascular system — the cash flow is the heart, currently beating but faintly. The "blood pressure" (liquidity) is low due to negative working capital, indicating early "symptoms of distress." Without intervention, the risk of financial "collapse" rises. However, with improved cash management and capital support, the company can regain "vitality" and strengthen its financial health.

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