VT CONSULTANCY LTD

Executive Summary

VT Consultancy Ltd has made a remarkable financial recovery in 2024, moving from a position of net liability to positive net assets and healthy cash reserves. This turnaround reflects sound management and improved liquidity, signaling a strengthening financial condition. To sustain and build on this recovery, the company should focus on growing its financial buffer, managing working capital efficiently, and preparing strategically for future growth.

VT CONSULTANCY LTD - Analysis Report

Company Number: 13776139

Analysis Date: 2025-07-20 15:16 UTC

Financial Health Assessment of VT CONSULTANCY LTD as of 31 December 2024

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1. Financial Health Score: B

Explanation:
VT Consultancy Ltd has demonstrated a significant financial recovery and strengthening from previous years of distress. The balance sheet now shows positive net assets and net current assets, indicating improved liquidity and solvency. However, the relatively modest absolute values and limited asset base suggest the company is still in an early growth or recovery phase and should remain vigilant. The ‘B’ grade reflects a solid and improving financial condition with some room for strengthening resilience.

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2. Key Vital Signs (Core Financial Metrics & Interpretation):

Metric	2024 Value	Interpretation
Net Assets (Shareholders’ Funds)	£6,267	Positive net assets indicate the company’s total assets exceed its liabilities, a health sign.
Net Current Assets (Working Capital)	£6,028	Healthy working capital means the company can cover short-term obligations comfortably.
Cash at Bank	£13,296	Strong cash position—"healthy cash flow" reserves to meet operational needs and contingencies.
Current Liabilities	£7,742	Manageable short-term debts; no alarming spikes compared to previous years.
Fixed Assets	£239	Small fixed asset base, typical for a consultancy; low depreciation charge relative to asset cost.
Profit & Loss Account (Retained Earnings)	£6,266	Positive retained earnings show accumulated profitability or capital injections.
Year-on-Year Asset Change	From -£3,598 (2023) to £6,267 (2024)	Significant turnaround from negative to positive net assets shows business "recovery from distress."

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3. Diagnosis: What the Numbers Reveal About Business Health

• Recovery and Resilience: The company was previously in a state of financial distress with negative net assets and net current liabilities in 2021 through 2023, signaling liquidity issues and potential solvency risks. The 2024 figures indicate a robust recovery, moving into a positive financial position. This is akin to a patient recovering from a critical illness and regaining strength.

• Liquidity Strength: The strong cash reserves and positive working capital suggest VT Consultancy Ltd has established a healthy cash flow cycle, able to meet short-term obligations without strain—much like a patient with stable vital signs after treatment.

• Asset Base: The small fixed asset base is typical for a service-oriented business, focused more on human capital than physical assets. The company’s value lies in its consultancy services rather than tangible assets.

• Ownership and Control: The single director and 100% shareholder, Natalie Clair Von Tersch, gives clear governance but also means the company’s success is closely tied to her management and strategic decisions.

• Risk Factors: While the turnaround is promising, the company’s financial "immune system" is still developing. The relatively low level of net assets and reliance on cash reserves means any unexpected shocks (market downturns, loss of clients) could cause financial strain. Continued monitoring and prudent financial management are essential.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Build a Financial Buffer: Continue to increase cash reserves and retained earnings to create a stronger cushion against business volatility. Think of this as building immunity to future financial shocks.

2. Manage Payables and Receivables: Optimize credit terms with clients and suppliers to maintain or improve working capital. This will ensure ongoing "healthy circulation" of funds.

3. Diversify Revenue Streams: Explore additional consultancy niches or complementary services to reduce dependency on a narrow client base, enhancing business "resilience."

4. Formal Financial Planning: Implement regular cash flow forecasting and budgeting to anticipate and mitigate potential liquidity issues early.

5. Prepare for Growth: Consider strategic investments in marketing or technology to support scaling, ensuring that growth does not outpace financial capacity.

6. Governance and Compliance: Maintain strict compliance with filing deadlines and corporate governance to avoid penalties and reputational risks.

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Executive Summary