ASPIRE OPERATIONS CONSULTANCY LTD

Executive Summary

Aspire Operations Consultancy Ltd shows a stable financial base with positive liquidity and net assets, earning a solid B grade in financial health. However, the decline in net current assets and equity signals emerging cautionary symptoms that warrant attention to cash flow and profitability. Strengthening operational resilience and proactive financial management will be key to sustaining and improving the company’s financial wellness.

ASPIRE OPERATIONS CONSULTANCY LTD - Analysis Report

Company Number: 13451733

Analysis Date: 2025-07-29 19:37 UTC

Financial Health Assessment for Aspire Operations Consultancy Ltd
As of Financial Year Ending 30 June 2024

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1. Financial Health Score: B

Explanation:
Aspire Operations Consultancy Ltd exhibits generally sound financial health for a micro-entity with a stable net asset base and positive working capital. The company maintains more current assets than current liabilities, indicating a healthy liquidity position. However, the reduction in net assets and net current assets compared to the previous year signals caution. The absence of audits and limited scale (single director, single employee) suggest the company is still in an early or small operational phase, which introduces certain risks typical for micro-sized businesses.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	55,088	Sufficient liquid assets but decreased from prior year (71,640)
Current Liabilities	37,260	Manageable short-term obligations
Net Current Assets (Working Capital)	29,286	Positive working capital, though decreased from 35,330 in 2023, indicating slightly tighter liquidity
Net Assets (Shareholders’ Funds)	27,796	Stable equity base, but a decrease from £35,256 in 2023 signals retained earnings or capital erosion
Share Capital	110	Nominal capital typical for micro-entities
Number of Employees	1	Very small operation, highly dependent on director
Filing Status	Up to date	Compliance with statutory deadlines is a positive sign

Interpretation of Vital Signs:

• Liquidity (Healthy Cash Flow): The company keeps more current assets than liabilities, which means it is capable of meeting short-term obligations without distress. The fall in current assets is a symptom of possibly lower cash inflows or higher cash outflows.
• Capital Structure: The net assets dropping year-on-year could be a symptom of reduced profitability or increased expenses, which should be monitored closely.
• Operational Scale: With only one employee (the director), the business is heavily reliant on this individual’s capacity and decision-making. This presents both agility and risk.

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3. Diagnosis: What the Financial Data Reveals About Business Health

Aspire Operations Consultancy Ltd is a micro-sized consultancy operating within the management consultancy sector. Its financial "vital signs" show the company is overall solvent and liquid, with no immediate signs of financial distress. However, the declining net assets and working capital suggest early symptoms of financial tightening or reduced profitability.

• The business is maintaining positive equity and liquidity, which is a good sign of financial "health."
• The decrease in net current assets and net assets warns of potential "symptoms of distress" such as reduced cash generation or increased expenses, which may impact sustainability if the trend continues.
• The company's dependence on a single director for leadership and operations heightens operational risk, akin to a patient relying heavily on a single organ function to sustain life.
• No long-term liabilities of concern are present, which is a positive sign indicating limited debt burden.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Cash Flow Management:

   • Monitor cash inflows and outflows rigorously to avoid liquidity strain. Consider preparing monthly cash flow forecasts to anticipate any short-term shortages.
   • Explore opportunities to increase current assets (e.g., faster debtor collections, reducing unnecessary stock or expenses).

2. Profitability Focus:

   • Analyze the causes behind the decline in net assets—are expenses rising, or revenues falling? Implement cost control measures or seek new revenue streams to improve profitability.
   • Consider diversifying client base or services to stabilize income sources.

3. Operational Resilience:

   • Given the single-person operation, plan for contingencies such as temporary external support to avoid disruption in case the director is unavailable.
   • Explore the potential for hiring or contracting additional staff or consultants to reduce reliance on one individual.

4. Compliance and Governance:

   • Continue to file accounts and confirmation statements timely to avoid penalties and ensure good standing with Companies House.
   • Although audit exemption is applicable, maintaining robust internal controls and possibly engaging external advice periodically will enhance financial governance.

5. Strategic Planning:

   • Develop a longer-term business plan including financial projections to guide growth and investment decisions.
   • Regularly review key financial metrics to catch early signs of distress and act proactively.

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