TWS MANAGEMENT CONSULTING LIMITED

Executive Summary

TWS MANAGEMENT CONSULTING LIMITED is currently facing financial strain characterized by negative working capital and a significant reduction in shareholder equity over the last year. While not in immediate danger, the company’s liquidity symptoms require prompt action to stabilize cash flow and prevent further capital erosion. Strengthening operational cash management and exploring revenue growth opportunities are critical next steps to restore financial health.

TWS MANAGEMENT CONSULTING LIMITED - Analysis Report

Company Number: 13595035

Analysis Date: 2025-07-20 17:00 UTC

Financial Health Assessment: TWS MANAGEMENT CONSULTING LIMITED

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1. Financial Health Score: C

Explanation:
The company shows signs of financial strain reflected in its working capital position and declining net assets, but it remains solvent with positive shareholder equity. This is a warning "yellow flag" grade, indicating caution but not immediate distress.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	1,696	2,120	Slight decrease; low-value long-term assets
Current Assets	199	1,626	Sharp reduction; poor short-term liquidity
Current Liabilities	581	1,086	Decreased liabilities but still high relative to assets
Net Current Assets (Working Capital)	-382	540	Negative working capital in 2024; liquidity concern
Total Assets less Current Liabilities	1,314	2,660	Declining asset buffer after short-term debts
Net Assets (Shareholders Funds)	1,314	2,660	Equity halved over one year; signals erosion of capital

Interpretation of Vital Signs:

• Working Capital: The company’s "cash flow pulse" is weak, as current liabilities now exceed current assets, indicating difficulties meeting short-term obligations. This is a critical symptom of potential liquidity stress.
• Net Assets: A 50% drop in net assets suggests the company is burning capital or has realized losses. Although still positive, the downward trend is concerning.
• Fixed Assets: Minimal and decreasing fixed assets show the company does not hold significant long-term investments or property, which is typical for a consultancy but limits asset-based security.
• Employee Count: Zero employees reported in 2024 suggests either a sole operator or outsourcing model, reducing payroll commitments but potentially limiting operational capacity.

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3. Diagnosis

TWS MANAGEMENT CONSULTING LIMITED exhibits symptoms of financial contraction with a notable decline in liquidity and shareholder funds within a single year. The company’s negative working capital indicates it may be struggling to convert short-term assets (cash, receivables) quickly enough to cover immediate debts, which is akin to a patient showing signs of dehydration—warning signs that cash inflow is insufficient or delayed.

The halving of net assets is a red flag, indicative of either operational losses or capital withdrawals. However, the company remains solvent with positive equity, and no overdue filings or legal distress signals are present, suggesting the condition is serious but not critical.

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4. Recommendations

• Improve Liquidity: Focus on accelerating receivables collection and managing payables to restore positive working capital. Consider short-term financing options if necessary to bridge cash flow gaps.
  Analogy: Like administering fluids to a dehydrated patient to restore balance.
• Cost Management: Review operating expenses and overheads to reduce capital erosion. With zero employees, ensure subcontractor contracts are cost-effective and aligned with revenue.
• Revenue Growth: Explore new client acquisition or upselling to existing clients to increase cash inflow and halt the erosion of equity.
• Financial Monitoring: Implement monthly cash flow forecasting and financial health dashboards to detect early symptoms of distress promptly.
• Equity Strengthening: If feasible, inject additional capital from shareholders or consider external investment to rebuild the equity base and provide a buffer for future operations.

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Executive Summary