TELICENT LTD

Executive Summary

TELICENT LTD demonstrates a strong financial position with healthy liquidity and growing equity, reflecting a stable and expanding business. However, rising debtors and current liabilities warrant careful management to maintain cash flow health. With targeted improvements in receivables and liability management, the company is well-placed for continued financial wellness and growth.

TELICENT LTD - Analysis Report

Company Number: 12480353

Analysis Date: 2025-07-29 20:09 UTC

Financial Health Assessment: TELICENT LTD (as at 31 January 2024)

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1. Financial Health Score: B

Explanation:
TELICENT LTD exhibits solid financial fundamentals with strong liquidity, positive working capital, and growing shareholders’ equity. The company is not burdened by overdue filings or legal distress indicators, which supports operational stability. However, some caution is warranted due to the significant increase in debtors and current liabilities, which could signal cash flow timing risks or collection challenges. The overall grade B reflects a healthy but cautiously monitored financial condition.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,343,103	Healthy short-term asset base, mainly cash and receivables, indicating liquidity strength.
Cash	488,221	Robust cash reserves providing a healthy cash flow “heartbeat” for daily operations.
Debtors	854,882	Substantial increase from prior year, which signals potential “symptom” of delayed cash inflows.
Current Liabilities	717,413	Increased short-term obligations require monitoring to avoid liquidity strain.
Net Current Assets	625,690	Positive working capital “buffer” indicating the company can cover short-term debts comfortably.
Shareholders’ Funds	689,024	Growing equity base, showing retained profits and financial strength over time.
Fixed Assets (Tangible)	63,334	Investment in long-term operational assets, supporting business capacity and growth.
Employee Count	18 (average)	Staff expansion indicates business growth, but also higher fixed costs and wage liabilities.
Profit & Loss Reserve	688,624	Accumulated earnings retained in the business, a “healthy organ” of financial sustainability.

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3. Diagnosis

TELICENT LTD’s financial “vital signs” reveal a company in good health with strong liquidity and improving net assets. The cash position is strong, which is critical to maintaining operational “pulse” and funding growth initiatives. The significant rise in debtors (trade and other) is a symptom worth close attention, as it may suggest longer customer payment terms or collection delays that could impact cash flow if not managed effectively.

The current liabilities have also increased substantially, consistent with business expansion but requiring careful management to avoid “financial congestion.” The positive net current assets and growing equity reserves indicate the company has a solid financial “immune system” to absorb shocks and invest in growth.

The company has maintained compliance with filing deadlines, showing good governance and no signs of regulatory or financial distress. The directors’ report and notes indicate prudent accounting policies and transparency, factors that contribute to financial wellness.

Overall, the company is financially stable, growing, and well-positioned but must remain vigilant in managing receivables and short-term liabilities to prevent liquidity “strain.”

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4. Recommendations

• Improve Debtor Management:
  Implement tighter credit control and enhanced collection processes to reduce debtor days and convert receivables into cash more swiftly, improving liquidity.

• Monitor and Manage Short-Term Liabilities:
  Regularly review current liabilities and consider negotiating extended payment terms with suppliers to better align with cash inflows.

• Cash Flow Forecasting:
  Develop detailed cash flow projections to anticipate periods of tight liquidity and plan financing or operational adjustments accordingly.

• Invest in Operational Efficiency:
  Assess fixed asset utilization to ensure capital expenditure drives productivity without unnecessary cost increases.

• Maintain Governance and Compliance:
  Continue timely filings and transparent reporting to maintain stakeholder confidence and avoid penalties.

• Employee Cost Control:
  With growing headcount, carefully manage wage costs relative to revenue to sustain profitability and financial health.

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