TPS CONSULTING LIMITED

Executive Summary

TPS CONSULTING LIMITED shows solid initial financial health with positive net assets and working capital, typical of a stable start-up micro-entity. While early in its lifecycle, the company exhibits no signs of financial distress. To ensure ongoing wellness, focus should be placed on revenue growth, cash flow management, and preparing for future scaling.

TPS CONSULTING LIMITED - Analysis Report

Company Number: 14812633

Analysis Date: 2025-07-29 14:24 UTC

Financial Health Assessment for TPS CONSULTING LIMITED

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1. Financial Health Score: B

Explanation: TPS CONSULTING LIMITED demonstrates a sound financial base with positive net assets and working capital. The company is newly incorporated (less than a year old) and operates within the micro-entity threshold, limiting complexity in financials. The presence of net current assets and shareholder funds indicates initial financial stability. However, limited financial history and single-employee operation constrain a higher grade. Overall, the company appears financially stable but early in its lifecycle.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£73,926	Adequate liquid resources for short-term obligations.
Current Liabilities	£40,769	Obligations due within one year, manageable given assets.
Net Current Assets	£33,157	Positive working capital, indicating healthy short-term liquidity.
Net Assets / Shareholders’ Funds	£33,157	Indicates the company’s equity base; positive and stable.
Average Number of Employees	1	Minimal staffing, typical for micro-entity start-ups.
Company Age	~1 year	Early stage; limited financial history to assess trends.

Interpretation:
The company shows "healthy cash flow" and "strong working capital," which are vital signs of good financial health. Positive net assets reflect that total assets exceed liabilities, which is a "healthy heart" of the balance sheet. The relatively small scale and single employee point to a lean operation, common in early-stage consulting firms.

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3. Diagnosis

TPS CONSULTING LIMITED is in the "early recovery" or "start-up" phase with promising financial stability. The positive working capital suggests no immediate liquidity distress, and the shareholder equity implies the company is not over-leveraged. The financial "vital signs" show no symptoms of financial strain such as negative net assets or excessive short-term debt. However, the limited operational scale and absence of profitability or revenue data (typical in micro-entity filings) mean that the company is still building its financial "immune system" against market risks.

The director, who is also the sole significant controller, provides concentrated leadership but also represents a single point of dependency, a factor to monitor as the company grows.

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4. Recommendations

• Build Revenue Streams and Profitability: Focus on generating consistent income to strengthen retained earnings and improve the P&L reserve, which currently is not reported.
• Maintain Healthy Cash Flow: Continue monitoring cash inflows and outflows to avoid liquidity "symptoms" like delayed payments or overdrafts.
• Consider Risk Diversification: As the company grows, explore expanding the team or partnerships to reduce dependency on a single individual.
• Prepare for Scale: Plan for transitioning from micro-entity status by upgrading accounting systems and compliance as turnover and employee numbers increase.
• Regular Financial Reviews: Institute periodic financial health checks to detect early warning signs of distress, such as increasing liabilities or declining net assets.
• Compliance Vigilance: Ensure timely filing of annual accounts and confirmation statements to avoid penalties and maintain corporate good standing.

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