ALRIC CONSULTING LTD

Executive Summary

Alric Consulting Ltd demonstrates strong financial health with robust liquidity, increasing net assets, and effective debt management typical of a well-run micro-entity. The business is financially solvent with a healthy cash flow position but should monitor operational capacity carefully. Strategic growth and maintaining working capital discipline will support ongoing financial wellness and business sustainability.

ALRIC CONSULTING LTD - Analysis Report

Company Number: 12498361

Analysis Date: 2025-07-29 16:28 UTC

Financial Health Assessment for Alric Consulting Ltd (as of 31 March 2024)

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1. Financial Health Score: A-

Explanation:
Alric Consulting Ltd exhibits strong financial health for a micro-entity. The company maintains a solid net asset position with healthy working capital and low current liabilities relative to current assets. The steady growth in net assets over recent years and consistent shareholder equity reflect a well-managed business with stable financial footing. Minor room for improvement lies in employee retention and revenue diversification, but overall, the financial "vital signs" indicate a robust and solvent business.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£78,836	Represents liquid assets readily available to cover short-term obligations. Healthy level for micro-business.
Current Liabilities	£4,386	Very low short-term debts, indicating minimal immediate financial pressure.
Net Current Assets	£74,450	Strong positive working capital ("healthy cash flow environment"), ensuring operational liquidity.
Net Assets / Shareholders’ Funds	£74,450	Increasing equity base over 5 years, showing retained earnings and business value growth.
Share Capital	£100	Minimal share capital typical of small private companies; financial strength comes from retained earnings.
Average Employees	1 (2024)	Reduction from 3 in prior year may suggest operational scaling or efficiency changes; could impact capacity.
Director Loan Advances	£0 (repaid)	Director loans fully repaid, removing any related financial risk or dependency.
Audit Exemption	Yes	Micro-entity status allows simplified reporting, consistent with company size and transparency.

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3. Diagnosis: Financial Condition and Business Health

Alric Consulting Ltd’s financial "vital signs" illustrate a business in good health:

• Solvency and Liquidity: The company’s net current assets of £74,450 and low current liabilities indicate excellent short-term solvency and liquidity. This suggests the business can comfortably meet its immediate financial obligations — a "healthy heartbeat" in financial terms.

• Growth and Stability: Net assets have grown from £51,968 in 2020 to £74,450 in 2024, indicating steady accumulation of retained profits and prudent financial management. This "weight gain" in net worth is a positive symptom showing business value creation.

• Operational Scale: The decrease in average employees from 3 to 1 may reflect a leaner operation or outsourcing strategy, which could be efficient but also potentially a symptom of reduced operational capacity or workload.

• Director Advances: The repayment of director loans removes a potential liability risk, improving the company's financial "immune system."

• Compliance and Reporting: Filing accounts on time and maintaining exemption status from audit reflects good corporate governance and compliance, which supports financial transparency and stakeholder confidence.

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4. Recommendations: Actions to Enhance Financial Wellness

1. Sustain and Grow Revenue Streams:
   To support future growth, explore opportunities for broadening client base or service offerings within management consultancy to increase turnover and build resilience.

2. Monitor Employee Capacity:
   Assess if the current staffing level (1 employee including the director) can sustain business growth or client demands. Consider strategic hiring or subcontracting to avoid operational bottlenecks.

3. Maintain Strong Working Capital Management:
   Continue prudent management of current assets and liabilities to preserve liquidity. Healthy cash flow is critical, especially for a micro-company.

4. Plan for Capital Structure Optimization:
   Although share capital is minimal, consider whether future capital injections or external funding might be needed to scale operations or invest in growth initiatives.

5. Regular Financial Reviews:
   Conduct periodic financial health checks to detect any early "symptoms" of distress such as increasing liabilities or declining assets, ensuring the business remains financially fit.

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