Company Number: 13115583

Analysis Date: 2025-07-20 11:16 UTC

Financial Health Assessment for 65 MANAGEMENT CONSULTANCY LTD

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1. Financial Health Score: D

Explanation:
The company shows signs of significant financial distress, with a drastic decline in net assets from £4,556 in 2021 to just £36 in 2024. This severe shrinkage in working capital ("vital signs") signals a "symptom of distress" that cautions on the company's ability to sustain operations and absorb financial shocks. While the company remains active and compliant, the extremely low cash and asset base presents a critical concern.

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2. Key Vital Signs

Metric	2021	2023	2024	Interpretation
Current Assets	£4,556	£2,055	£36	Sharp decline in liquid assets; unhealthy cash flow indicator
Net Current Assets	£4,556	£2,055	£36	Working capital shrinking drastically; liquidity risk increasing
Total Assets less CL	£4,556	£2,055	£36	Overall asset base eroding significantly
Net Assets / Shareholders’ Funds	£4,556	£2,055	£36	Equity nearly wiped out; company’s net worth close to zero
Share Capital	£1	£1	£1	Nominal capital; no fresh equity injections
Number of Employees	1	1	1	No growth in human resources, possibly limited business activity

• Liquidity: The "healthy cash flow" indicator is absent; the company has just £36 in current assets by 2024, which is insufficient to cover even minimal expenses.
• Solvency: Net assets almost zero, indicating the company’s "financial pulse" is very weak and it is at risk of insolvency if adverse conditions persist.
• Capital Structure: Share capital is minimal (£1), and shareholder funds have declined drastically, implying no significant reinvestment or profit retention.

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3. Diagnosis

65 MANAGEMENT CONSULTANCY LTD is showing clear symptoms of financial distress:

• The drastic reduction in current assets and net assets over three years indicates the company is burning through resources with limited replenishment.
• The micro entity status and single employee suggest a small-scale operation, but the depletion of working capital is alarming.
• No audit exemption is taken, but the financial statements reveal no off-balance-sheet arrangements or hidden liabilities.
• The company's "financial health" is fragile, akin to a patient with a dangerously low blood pressure — the company is barely maintaining operational viability.
• The sole director and significant shareholder, Mr. Richard Walsh, controls 75-100% of shares, which implies that strategic decisions rest with one individual who should closely monitor the financial condition.

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4. Recommendations

To improve the company's financial wellness and avoid the risk of collapse, the following actions are advised:

1. Immediate Cash Flow Management:

   • Review and tighten cash inflows and outflows to restore a healthy liquidity buffer.
   • Pursue overdue receivables or negotiate extended payment terms with suppliers.

2. Capital Injection or Financing:

   • Consider fresh equity infusion or short-term borrowings to strengthen working capital and avoid insolvency risks.

3. Cost Rationalization:

   • Minimise non-essential expenses; consider whether current operations and business model are sustainable with existing resources.

4. Business Development:

   • Explore new clients or contracts to increase revenue streams and reverse the declining asset trend.

5. Financial Monitoring:

   • Implement regular financial health checks (monthly cash flow forecasts, management accounts) to detect symptoms early.

6. Professional Advice:

   • Engage financial advisors or turnaround specialists to diagnose deeper operational issues beyond the balance sheet.

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