VINUM CONSULTING LTD

Executive Summary

VINUM CONSULTING LTD demonstrates stable and healthy financial fundamentals with positive working capital and consistent net assets over recent years. The company is well-managed from a compliance perspective but operates on a small scale with limited capital. To sustain and improve financial wellness, it should maintain liquidity discipline, consider growth strategies, and formalize governance practices to mitigate concentrated control risks.

VINUM CONSULTING LTD - Analysis Report

Company Number: 13107095

Analysis Date: 2025-07-20 17:35 UTC

Financial Health Assessment for VINUM CONSULTING LTD

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1. Financial Health Score: B

Explanation:
VINUM CONSULTING LTD exhibits generally sound financial health with stable net assets and positive working capital over the past five years. The company is small and operates under micro-entity reporting standards, reflecting a lean operational structure. However, slight fluctuations in current liabilities and a modest scale of operations keep it from an A grade. Overall, the company is financially stable but should monitor cash flow and liabilities closely to maintain resilience.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Current Assets	12,873	Represents short-term resources available, primarily cash or receivables — healthy level.
Current Liabilities	2,963	Debts and obligations due within a year — comfortably low relative to assets.
Net Current Assets	9,910	Positive working capital, indicating the company can cover short-term debts with ease.
Net Assets (Equity)	9,910	Total value remaining after liabilities — stable and slightly increased from prior year.
Share Capital	100	Minimal paid-in capital, typical for a micro private limited company.
Number of Employees	1	Indicates a very small operation, likely owner-managed or consultancy-based.
Filing Status	Up to date	No overdue accounts or returns — signals good compliance and governance practices.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow & Liquidity: The company maintains positive net current assets consistently, signaling a "healthy pulse" in liquidity. It can comfortably meet short-term obligations without stress.
• Stable Financial Position: Net assets have remained stable or slightly improved over the last five years, suggesting no erosion of shareholder value or distress signals.
• Lean Operation: With only one employee (likely the director himself), overheads are minimal, which reduces financial strain but also limits growth capacity.
• Low Leverage: Current liabilities are low and manageable; no signs of excessive debt or financial distress.
• Limited Capital Base: Share capital is nominal (£100), which is typical but means external funding or reserves are low — the company relies on retained earnings and operational cash flow.
• Compliance & Governance: All filings are up to date, reflecting good management discipline and legal compliance.
• Risk Factors: The company is wholly owned and controlled by a single individual, which concentrates control but may introduce succession and governance risks.

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4. Recommendations: Steps to Enhance Financial Wellness

• Maintain Positive Working Capital: Continue prudent management of receivables and payables to sustain liquidity "heartbeat." Avoid letting current liabilities grow faster than assets.
• Build Cash Reserves: Consider setting aside additional cash or short-term investments to buffer against potential downturns or unexpected expenses.
• Explore Growth Opportunities: To strengthen financial robustness, evaluate options to expand services or client base, increasing revenues and possibly hiring additional staff.
• Formalize Risk Management: With sole control by the director, establish documented processes for financial oversight and succession planning to reduce "single point of failure" risks.
• Monitor Overheads: Keep fixed costs low to maintain flexibility, especially given the company’s micro scale.
• Engage Professional Advice: Regularly review financial performance with accounting or advisory professionals for early diagnosis of any emerging issues.

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