TRIVEXA LTD

Executive Summary

TRIVEXA LTD is a newly established micro-entity in management consultancy showing early-stage financial stability but with a very narrow liquidity cushion and minimal equity base. The company's financial health is fragile but typical for a start-up, requiring careful cash flow management and strengthening of working capital. Proactive financial oversight and potential capital infusion are recommended to build resilience and support sustainable growth.

TRIVEXA LTD - Analysis Report

Company Number: 15604876

Analysis Date: 2025-07-29 19:10 UTC

Financial Health Assessment of TRIVEXA LTD

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1. Financial Health Score: C

Explanation:
As a newly incorporated micro-entity in the management consultancy sector, TRIVEXA LTD shows basic financial stability with positive net current assets and minimal net assets. However, the very low net asset base and slim working capital margin indicate a fragile financial condition typical of a start-up phase. This score reflects cautious optimism but flags the need for careful cash flow and capital management.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	867	Very low value, typical for a service-based consultancy with limited physical assets.
Current Assets	11,522	Includes cash or equivalents and receivables; adequate for short-term obligations.
Current Liabilities	11,240	Almost equal to current assets, indicating tight liquidity; working capital is only £282.
Net Current Assets (Working Capital)	282	A narrow cushion to cover short-term debts; "healthy cash flow" is presently minimal.
Total Assets less Current Liabilities	1,149	Slightly above current working capital, reflecting fixed assets plus net current assets.
Net Assets (Equity)	38	Extremely low equity base; the company is barely above break-even in net worth terms.
Shareholders’ Funds	38	Matches net assets; indicates very limited retained earnings or capital injection beyond initial funding.

Additional Notes:

• The company is classified as a micro-entity and has filed accounts under the small companies regime, which limits disclosure but suffices for basic assessment.
• The director is also the sole person with significant control, holding 75-100% of shares and voting rights, indicating centralized control and decision-making.

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3. Diagnosis: What the Financial Data Reveals About Business Health

TRIVEXA LTD is in the early stages of development, having been incorporated in March 2024 and filing its first accounts in March 2025. The "symptoms" of the company's financial health reveal:

• Fragile Liquidity:
  The minimal net current assets (£282) indicate a very tight liquidity position. The company has just enough short-term assets to cover its immediate liabilities, which can be a warning sign if cash inflows slow or unexpected expenses arise. This is akin to a patient with a barely stable pulse—stable for now but vulnerable to shocks.

• Minimal Equity Cushion:
  Net assets of only £38 show that the company has very little financial buffer or retained earnings. This is typical for a start-up but requires monitoring as ongoing losses or additional liabilities could quickly erode capital, leading to financial distress.

• Low Fixed Asset Base:
  With only £867 in fixed assets, the company is likely not capital-intensive, common for consultancy businesses relying on expertise rather than equipment. This reduces risk from asset depreciation but means growth depends heavily on cash flow and client acquisition.

• Director Advances and Control:
  The director has advanced £3,583 to the company, which may be supporting working capital needs. The director’s full control simplifies governance but concentrates risk and decision-making.

Overall, the company shows early-stage "healthy" signs but with vulnerabilities typical to new businesses: low liquidity cushion, minimal equity, and dependence on director funding. The financial "vitals" suggest close monitoring and proactive cash management to avoid developing symptoms of distress.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Working Capital Buffer:
  Aim to increase net current assets by building up cash reserves or accelerating receivables. This "strengthens the pulse" of financial health, providing resilience against unforeseen expenses or income delays.

• Monitor Cash Flow Diligently:
  Implement robust cash flow forecasting to ensure the company can meet short-term obligations without strain. Early detection of cash shortages allows timely corrective action.

• Plan for Equity Infusion or Profitability:
  Consider additional capital contributions or focus on achieving profitability quickly to build shareholders’ funds. This is akin to improving the patient's immune system—building financial strength to withstand shocks.

• Control Overhead Costs:
  Keep operating expenses lean as the company grows. Avoid accumulating liabilities that could overwhelm the tight liquidity position.

• Regular Financial Review:
  Conduct quarterly financial health checks to detect early warning signs and adjust strategies accordingly.

• Consider External Funding Options:
  If growth requires investment, explore financing options with favorable terms to avoid over-leveraging and maintain healthy balance sheets.

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