AMYS CONSULTING LTD

Executive Summary

AMYS CONSULTING LTD demonstrates positive liquidity and working capital, indicating generally healthy short-term financial "vital signs." However, the company shows emerging symptoms of distress, notably a significant reduction in net assets and increased deferred income liabilities, signaling potential equity erosion and future obligations. Proactive management of liabilities and rebuilding equity are recommended to improve financial resilience and sustainability.

AMYS CONSULTING LTD - Analysis Report

Company Number: 12809795

Analysis Date: 2025-07-19 11:53 UTC

Financial Health Assessment for AMYS CONSULTING LTD

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1. Financial Health Score: C

Explanation:
The company shows positive net current assets and net assets, indicating some cushion and net worth, but a significant drop in net assets from £5,519 in 2023 to £1,906 in 2024 signals emerging financial strain. The presence of accrued liabilities and the absence of fixed assets or employees suggest a lean operation but also raise caution about sustainability. Overall, the financial "vital signs" suggest moderate health but symptoms of distress requiring attention.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	10,803	5,519	Healthy short-term resources, increased cash or receivables
Current Liabilities	447	0	Low short-term obligations, manageable
Net Current Assets	10,356	5,519	Working capital is positive and improving, a good sign
Accruals and Deferred Income	8,450	0	Significant deferred income liability, a cautionary flag
Net Assets / Shareholders Funds	1,906	5,519	Declining net worth, indicates erosion of equity
Fixed Assets	0	0	No long-term asset base, possible reliance on intangible or service activities
Employees	0	0	No staff employed, potentially founder-operated or subcontracted

Interpretation:

• The company has a healthy cash flow symptom reflected in increasing current assets and positive net current assets.
• The emergence of £8,450 accruals/deferred income suggests a liability 'symptom' that may impact liquidity or future profitability if not managed.
• The decline in net assets signals a symptom of equity erosion, possibly due to losses or distributions.
• No fixed assets and no employees indicate a lightweight business model but may limit scalability.

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3. Diagnosis

AMYS CONSULTING LTD is operating as a micro-entity with a simple financial structure. The company maintains a positive net working capital, which is a vital sign of liquidity and short-term financial health. However, the sharp decrease in net assets (equity) from £5,519 to £1,906 over the last year is a warning symptom that the company’s retained earnings or capital base is being depleted. This could be due to operational losses, increased liabilities (notably the accruals/deferred income), or distributions to the owner.

The presence of significant accruals/deferred income (£8,450) may represent future obligations or unearned revenue and should be monitored carefully as it can strain cash flows or indicate potential revenue recognition issues.

The company’s lack of employees and fixed assets suggests that it is likely providing consultancy or agency services through subcontractors or the director themselves, which reduces fixed overhead but can limit growth potential.

Overall, the company's financial health is stable but fragile — showing symptoms of distress in equity erosion and potential deferred income liabilities.

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4. Recommendations

1. Manage Accruals and Deferred Income:
   Investigate the nature of the £8,450 deferred income liability. Ensure these obligations are met timely to avoid cash flow crunches or reputational damage.

2. Improve Equity Base:
   Consider strategies to rebuild net assets, such as retaining earnings, controlling expenses, or potentially injecting additional capital if needed.

3. Monitor Cash Flow Closely:
   Maintain healthy cash flow by timely collection of receivables and managing payables prudently. Avoid overextending credit or incurring liabilities.

4. Plan for Growth & Scalability:
   Evaluate the potential for hiring staff or investing in fixed assets that could enhance service delivery and allow scaling, balanced against cost control.

5. Regular Financial Reviews:
   Conduct quarterly financial reviews to catch early symptoms of distress, enabling swift corrective action.

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