TECHADVISE IT CONSULTING LTD

Executive Summary

TECHADVISE IT CONSULTING LTD is a newly incorporated dormant company with minimal financial activity and assets limited to initial share capital. While there are no signs of financial distress, the company has yet to commence trading, which is critical to building a sustainable financial foundation. To improve its financial health, the company should start operations, manage cash flow carefully, and maintain compliance with filing requirements.

TECHADVISE IT CONSULTING LTD - Analysis Report

Company Number: 15580420

Analysis Date: 2025-07-29 17:38 UTC

Financial Health Assessment for TECHADVISE IT CONSULTING LTD

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1. Financial Health Score: D

Explanation:
Given the company's dormant status, minimal financial activity, and very limited financial data (only £100 cash and net assets), it is too early to assign a strong financial health grade. The company is essentially in a "start-up" or "hibernation" phase with no operational revenue or expenses recorded. This results in a low score, reflecting a lack of financial activity rather than distress.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Status	Active	Company is legally operational
Account Category	Dormant	No significant financial transactions during year
Cash at Bank	£100	Extremely low cash balance, typical for dormant
Net Assets	£100	Minimal net worth reflecting nominal share capital
Shareholder Funds	£100	Corresponds to share capital issued
Accounting Reference Date	31 March	Standard year-end date
Directors & Control	Single Director (also Sole Shareholder)	Concentrated ownership and control
Industry Classification	IT Consultancy (SIC 62020)	Business planned in IT consultancy sector

• Dormant status means the company has not traded or generated income or expenses beyond nominal share capital.
• Cash and net assets at £100 reflect the initial share capital only.
• No liabilities or debts reported, which is expected in dormancy.
• Single director and 100% control indicate centralized decision-making.

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3. Diagnosis: What the Financial Data Reveals

The company is currently in a "financial hibernation" state, with no operational or trading activity recorded since incorporation in March 2024. This absence of transactions means there is no cash flow, no revenue generation, and no expenses—a typical symptom of a dormant company. The balance sheet confirms this with only the initial share capital present.

From a financial health perspective, there are no symptoms of distress such as negative cash flow, debt accumulation, or asset depletion. However, the company has not yet demonstrated any operational vitality or financial momentum necessary for sustainable business growth.

The "healthy cash flow" that a trading business relies on to pay expenses, invest in growth, and provide returns to shareholders is currently absent. This is not necessarily negative at this stage but highlights the company's embryonic state.

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4. Recommendations: Steps to Improve Financial Wellness

To transition from dormancy to a financially healthy trading company, consider the following:

1. Commence Trading Operations:

   • Begin delivering IT consultancy services to generate revenue.
   • Track all income and expenses meticulously to build financial statements.

2. Build Working Capital:

   • Ensure sufficient cash or financing to cover initial operating costs.
   • Avoid early cash flow "symptoms of distress" such as inability to pay bills or suppliers.

3. Maintain Compliance:

   • Continue timely filing of dormant or active accounts and confirmation statements.
   • If trading begins, ensure accounts reflect operational financials, including profit & loss.

4. Financial Planning and Budgeting:

   • Develop a realistic budget forecasting cash inflows and outflows.
   • Plan for contingencies and monitor financial performance regularly.

5. Consider Professional Advice:

   • Engage accountants or financial advisors early to set up robust accounting systems.
   • They can help with tax planning, compliance, and financial strategy.

6. Corporate Governance:

   • With a sole director and shareholder, ensure proper documentation and governance to prevent future legal or financial risks.

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Summary Using Medical Analogy

Currently, TECHADVISE IT CONSULTING LTD is in a financial remission, showing no symptoms of distress but also no signs of active healing or growth. Its vital signs—cash, net assets, and activity level—are minimal and stable but need stimulation through trading activity to develop into a healthy, thriving business. Without initiating operations and generating cash flow, the company remains in a dormant state akin to a patient in stasis awaiting treatment.

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