AJ SIP CONSULTANT LTD

Executive Summary

AJ SIP CONSULTANT LTD shows a healthy financial position for its first year, with positive net assets and strong liquidity signaling a stable foundation. The company is free from financial distress symptoms and compliant with statutory requirements. Continued focus on cash flow management and strategic growth will enhance long-term financial wellness.

AJ SIP CONSULTANT LTD - Analysis Report

Company Number: 15335482

Analysis Date: 2025-07-20 15:18 UTC

Financial Health Assessment Report for AJ SIP CONSULTANT LTD

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1. Financial Health Score: B

Explanation:
AJ SIP CONSULTANT LTD demonstrates a solid foundation with positive net assets and a healthy working capital position. Given its status as a micro-entity in its first financial year, the company shows encouraging signs of financial stability with prudent asset management and no overdue filings. However, as a newly incorporated company with limited financial history, the score reflects good early-stage health but with room to build a stronger track record.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	13,450	Reflects investment in long-term resources, modest but suitable for a consultancy business.
Current Assets	21,065	Cash and receivables are sufficient to cover short-term needs.
Current Liabilities	6,691	Short-term debts are manageable and well-covered by current assets.
Net Current Assets (Working Capital)	14,872	Indicates healthy liquidity; the company can comfortably meet near-term obligations.
Net Assets (Equity)	28,322	Positive equity shows the company’s net worth is stable and assets exceed liabilities.
Employee Count	2	Small team size consistent with micro-entity status; controlled overheads.
Filing Status	Up to date	Compliance is current, reducing risk of penalties or administrative issues.

Interpretation:
The company’s “vital signs” suggest a financially stable entity with adequate resources to operate and grow. The positive net current assets indicate “healthy cash flow” potential, crucial for day-to-day operations and unforeseen expenses.

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3. Diagnosis

AJ SIP CONSULTANT LTD is in a strong initial financial position consistent with a newly established micro-entity consultancy firm. The balance sheet reveals no symptoms of financial distress such as negative working capital or excessive liabilities. The company’s net assets are positive and reflect prudent financial management by its sole director and majority shareholder.

The “symptoms” of a sound business include:

• Healthy liquidity (net current assets) providing a buffer against short-term shocks.
• Modest fixed asset base aligned with business activity (management consultancy).
• Clean compliance record with no overdue filings or penalties.

Given the company’s youth and micro-entity status, the financial data does not reveal any chronic conditions or warning signs such as cash flow strain, excessive borrowing, or poor asset quality.

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4. Recommendations

To maintain and improve financial wellness, the following actions are advised:

• Build Cash Reserves: Continue to maintain and grow cash liquidity to support business expansion or unexpected costs. Healthy cash flow is vital, like a strong heartbeat sustaining business vitality.
• Monitor Working Capital: Keep a close eye on receivables and payables to avoid any tightening of liquidity that could signal early signs of distress.
• Plan for Growth: As the business grows, consider investing in scalable assets or technology to improve service delivery and competitive positioning.
• Maintain Compliance: Ensure timely submission of accounts and returns to sustain a clean compliance record and avoid administrative stress.
• Diversify Revenue Streams: Explore opportunities to broaden client base or services to mitigate risks associated with dependency on limited contracts.
• Financial Forecasting: Develop short- and medium-term financial projections to anticipate cash flow needs and investment opportunities.

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