TROIKA ANALYTICS LTD

Executive Summary

TROIKA ANALYTICS LTD exhibits strong initial financial health with robust liquidity and positive net assets, reflecting a stable foundation typical of a new consultancy start-up. While current operations are lean, the company is well-positioned for growth with prudent cash management and strategic investments in resources. Sustained focus on client expansion and governance will be key to maintaining financial wellness as the business develops.

TROIKA ANALYTICS LTD - Analysis Report

Company Number: 15681278

Analysis Date: 2025-07-29 17:24 UTC

Financial Health Assessment Report for TROIKA ANALYTICS LTD

---

1. Financial Health Score: B

Explanation:
TROIKA ANALYTICS LTD demonstrates a sound initial financial standing for a newly incorporated company, with positive net assets and working capital. The balance sheet shows a healthy liquidity position supported by a strong cash reserve relative to current liabilities. However, the company is still in its infancy (incorporated less than a year ago), lacks employees, and operates with minimal fixed assets, which limits the depth of financial data available for a thorough trend analysis. This score reflects a stable but early-stage financial health profile with room for growth and risk mitigation.

---

2. Key Vital Signs

• Net Current Assets (Working Capital): £76,763
  Interpretation: Positive working capital indicates the company can cover short-term obligations comfortably, a sign of healthy liquidity and operational cash flow management.

• Cash at Bank and in Hand: £108,504
  Interpretation: A strong cash position relative to current liabilities (£69,063) is a vital sign of liquidity health, providing a cushion against unexpected expenses or revenue fluctuations.

• Current Liabilities: £69,063
  Interpretation: Includes VAT, taxes, social security, and director loans. The company must manage these obligations carefully to avoid liquidity stress.

• Net Assets / Shareholders’ Funds: £77,284
  Interpretation: Positive net assets indicate the company’s financial foundation is sound, funded mainly through equity with minimal debt, which reduces financial risk.

• Fixed Assets: £521 (Tangible Assets - computer equipment)
  Interpretation: Minimal investment in fixed assets is typical for a consultancy/startup, but may require future capital expenditure to support growth.

• No Employees (Average number during year: 0)
  Interpretation: The company currently operates without employees, implying reliance on the director or contractors. This limits operational scale but reduces payroll liabilities initially.

• Profit and Loss Account Reserve: £76,984
  Interpretation: Reflects accumulated profits retained in the business. For a new company, this suggests initial profitability or capital injections.

---

3. Diagnosis

TROIKA ANALYTICS LTD is in the early stages of its business lifecycle, exhibiting the "vital signs" of a financially healthy enterprise. The company’s liquidity is robust, with cash reserves well above current liabilities, akin to a patient with a strong pulse and stable blood pressure. The positive net assets and shareholders' funds indicate a solid equity base, minimizing reliance on external borrowing and lowering financial strain risk.

The absence of employees and minimal fixed assets correspond to a lean operating model typical of a consultancy start-up. However, this also means the company has limited operational capacity and may face challenges scaling without additional human resources or investment in technology.

The "symptoms" show no signs of financial distress such as negative working capital, overdue filings, or significant debt burdens. The director’s 75-100% control signals centralized decision-making, which can be an advantage in agility but also concentrates risk.

---

4. Recommendations

• Maintain Healthy Cash Flow: Continue prudent management of receivables and payables to sustain positive working capital. Keep a close watch on VAT and tax liabilities to avoid cash flow bottlenecks.

• Plan for Growth Investment: Consider strategic investment in fixed assets or hiring to enable service delivery expansion. This will support scaling the business beyond sole director operations.

• Build Revenue Streams: Focus on client acquisition and diversification to enhance income stability. Early profitability is encouraging, but growth will require expanding the customer base.

• Risk Management: As the director holds significant control, implement governance practices to mitigate risks associated with single-person decision-making, including financial controls and external advice.

• Prepare for Future Filings: Ensure timely preparation of annual accounts and confirmation statements to maintain compliance and avoid penalties.

---