ALJ CONSULTING AND SERVICES LTD

Executive Summary

ALJ CONSULTING AND SERVICES LTD is a newly formed micro-entity with a very modest financial base and minimal working capital. Its financial health is stable but fragile, reflecting early-stage operations with tight liquidity and limited assets. To ensure sustainable growth, the company should focus on building cash reserves, growing revenues, and maintaining careful financial monitoring.

ALJ CONSULTING AND SERVICES LTD - Analysis Report

Company Number: SC806947

Analysis Date: 2025-07-20 11:03 UTC

Financial Health Assessment Report: ALJ CONSULTING AND SERVICES LTD

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1. Financial Health Score: C

Explanation:
The company, being newly incorporated and classified as a micro-entity, shows minimal financial activity with a very modest net asset base of £105. While there are no signs of financial distress, the very thin margin between current assets and liabilities indicates a fragile liquidity position. The financial health is stable but extremely limited in scale, reflecting early-stage operations with limited financial buffer.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£4,430	Small pool of liquid and short-term assets, likely cash or receivables.
Current Liabilities	£4,325	Nearly equal short-term obligations, indicating tight liquidity.
Net Current Assets	£105	Positive but minimal working capital; the company can cover its short-term debts but with very little cushion.
Net Assets (Shareholders' Funds)	£105	Equity base is very small, reflecting initial capital or retained earnings.
Employees	1	Minimal staffing, consistent with micro-entity status and early stage.

Interpretation:
The "vital signs" of ALJ CONSULTING AND SERVICES LTD resemble a patient just starting treatment: the balance sheet is very light, with barely a pulse of financial resources beyond immediate liabilities. The company has no significant fixed assets or reserves and operates on a shoestring. However, there are no alarming symptoms such as negative equity or overdue filings.

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3. Diagnosis

Underlying Business Health:
This is a very young company (incorporated April 2024) with a simple micro-entity financial profile. The narrow margin between current assets and liabilities suggests the company is operating with minimal financial buffer—akin to a patient with stable vitals but low energy reserves. It is not showing signs of stress or distress at this stage, but its financial "immune system" is still underdeveloped.

The sole director and controlling shareholder structure indicates centralized decision-making, which can be efficient but also concentrates risk in a single individual. The lack of audit and small scale of operations are typical and appropriate for the micro category.

No indication exists yet of profitability or significant revenue generation, as the accounts only reflect balance sheet position without profit and loss details. The company’s survival will depend on careful management of cash flow and growth of assets or revenues.

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4. Recommendations

• Build Cash Reserves: Focus on improving liquidity by increasing cash or receivables beyond immediate liabilities to create a stronger working capital cushion. Healthy cash flow is essential to avoid symptoms of financial strain.

• Monitor Cash Flow Closely: Given the tight net current assets, regular cash flow monitoring is vital to prevent liquidity crises, especially as the business grows.

• Focus on Revenue and Profit Growth: As a micro-entity, the company should aim at generating stable revenue streams to increase retained earnings and build net assets. This will enhance financial resilience.

• Maintain Compliance and Timely Filing: Continue to file accounts and confirmation statements on time to avoid regulatory penalties, which can exacerbate financial strain.

• Consider Diversifying Management Input: Although centralized control can be efficient, engaging additional directors or advisors could help strengthen governance and reduce operational risks.

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