AGILE DELTA CONSULTING LIMITED

Executive Summary

Agile Delta Consulting Limited exhibits solid financial health typical of a micro-entity consultancy with positive liquidity and equity. However, declining net assets and working capital suggest emerging financial pressures that require attention to safeguard future stability. Proactive cash flow management, profit retention, and strategic planning will enhance resilience and support sustainable growth.

AGILE DELTA CONSULTING LIMITED - Analysis Report

Company Number: 12694275

Analysis Date: 2025-07-20 17:16 UTC

Financial Health Assessment Report for Agile Delta Consulting Limited

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1. Financial Health Score: B

Explanation:
Agile Delta Consulting Limited demonstrates solid financial fundamentals for a micro-entity, with positive net current assets and shareholders’ funds. However, there is a noticeable decline in net assets and working capital compared to prior years, indicating some emerging financial strain. The company’s small scale, single employee, and minimal fixed assets limit growth capacity but maintain operational stability. Overall, the company’s financial health is good but requires attention to prevent further asset erosion.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	5,450	6,353	Stable but minimal; typical for a service consultancy.
Current Assets	147,098	161,761	Healthy liquid assets but declining year-on-year.
Current Liabilities	83,590	72,022	Rising short-term obligations; needs monitoring.
Net Current Assets (Working Capital)	63,508	89,739	Positive but reduced by ~29%; potential liquidity tightening.
Total Assets Less Current Liabilities	68,958	96,092	Decline in overall net assets; a symptom of reduced retained earnings or increased liabilities.
Shareholders’ Funds	68,958	96,092	Equity base shrinking; signals profit retention issues or distributions.
Employees	1	1	Micro-entity status reflected in minimal headcount.
Share Capital	1	1	Nominal share capital; typical for small private companies.

Interpretation:

• Healthy cash flow buffers: The company maintains a positive net current asset position, indicating it can cover short-term liabilities comfortably.
• Symptoms of distress: Decreased net assets and working capital over the last year suggest that the company is either incurring losses or distributing profits, which reduces its resilience.
• Low fixed assets: Typical for consultancy businesses, but limits collateral for borrowing.
• Increasing current liabilities: May indicate rising operational costs or deferred payments.

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3. Diagnosis

Agile Delta Consulting Limited is a financially stable micro-entity operating in the IT consultancy sector. The company’s balance sheet shows a healthy liquidity position with net current assets sufficient to cover short-term debts comfortably. The presence of a sole director and single employee structure reflects a lean operation optimized for consultancy work.

However, the gradual decline in net assets and working capital from £96k to £69k within a year serves as a warning sign. This shrinkage could be due to reduced profitability, increased expenses, or distributions to the majority shareholder, who also acts as director and controls the company fully. The balance sheet does not show any alarming debts, but the company should be cautious to avoid eroding its equity base further, which could undermine its long-term sustainability.

The absence of audit requirements (micro-entity exemption) limits detailed insight into profitability but does not detract from the overall positive liquidity signals. Given the company’s micro status, the low fixed asset base and minimal headcount are typical and not a concern.

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4. Recommendations

• Improve Profit Retention: Review expense management and pricing strategies to increase retained earnings and rebuild net assets.
• Monitor Working Capital: Keep a close eye on the ratio of current assets to current liabilities, ensuring that liquidity remains strong despite increased liabilities.
• Plan for Growth Capital: Consider modest investment in assets or human resources to support growth without jeopardizing cash flow.
• Maintain Compliance and Transparency: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain stakeholder confidence.
• Risk Management: Given the single-person operation, consider succession planning or delegation to mitigate operational risks.
• Engage in Financial Forecasting: Implement regular cash flow and profit forecasting to anticipate and manage any liquidity crunch.

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