ASSURED GAIN CONSULTING LTD

Executive Summary

Assured Gain Consulting Ltd has demonstrated significant financial improvement over the last year, transforming from a strained liquidity position to a stable and solvent entity with strong equity and working capital. The company benefits from prudent management but should carefully balance dividend payments and continue growing revenues to maintain financial wellness. With vigilant monitoring and strategic planning, its future outlook is cautiously optimistic.

ASSURED GAIN CONSULTING LTD - Analysis Report

Company Number: 14103709

Analysis Date: 2025-07-20 19:13 UTC

Financial Health Assessment for Assured Gain Consulting Ltd

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1. Financial Health Score: B

Explanation:
Assured Gain Consulting Ltd exhibits a robust recovery and strengthening in its financial position over the past two years. From a precarious position in 2023 with net current liabilities and minimal shareholders' funds, the company has significantly improved its liquidity and equity by May 2024. This positive turnaround suggests effective management and operational improvements. However, as a young micro-entity with limited financial history and relatively modest asset base, there's room for growth and further strengthening to achieve an "A" grade.

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2. Key Vital Signs

Metric	31 May 2024	Interpretation
Fixed Assets	£41,467	Stable long-term investments; slight decrease indicating controlled asset management.
Current Assets	£108,869	Healthy increase, showing improved cash, receivables, or short-term assets — good liquidity.
Current Liabilities	£55,110	Reduced from previous year, indicating better management of short-term obligations.
Net Current Assets	£53,759	Positive working capital; signals ability to meet short-term debts comfortably.
Total Assets Less Current Liabilities	£95,226	Strong improvement from £283 in previous year; reflects solid net asset position.
Shareholders' Funds	£95,226	Large increase from £283; capital injections and retained earnings improving equity base.
Average Employees	2	Small team size consistent with micro-entity status; manageable overheads.
Dividends Paid	£63,415	Indicates profitability but also cash outflow to owners; balance needed to sustain growth.
Director Advances/Debts	Minimal (£3 owed to directors)	Suggests reduced reliance on director loans, a positive sign of financial independence.

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3. Diagnosis

Symptoms Analysis:

• The company experienced a "symptom of distress" in 2023 with net current liabilities (£46,636), indicating short-term liquidity strain.
• By 2024, the company showed a "healthy cash flow" recovery with net current assets of £53,759, implying improved operational efficiency or capital injections.
• Shareholders' funds surged from £283 to £95,226, a strong "heartbeat" sign indicating increased capital or retained earnings, reinforcing the company's financial backbone.
• The slight reduction in fixed assets while current assets doubled suggests a strategic focus on liquidity and operational flexibility rather than asset-heavy expansion.
• Maintaining a small workforce aligns with micro-entity status, controlling costs while scaling cautiously.
• Payment of dividends shows profitability but also requires careful monitoring to avoid draining cash reserves critical for growth or unforeseen challenges.

Overall Condition:
Assured Gain Consulting Ltd is currently in a stable and improving financial condition, showing rapid recovery from prior liquidity strain. The company has built a solid foundation but remains vulnerable to market or operational shocks typical of young, small enterprises. The financial "vital signs" indicate resilience and prudent management but warrant ongoing vigilance.

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4. Recommendations

To strengthen financial wellness and ensure future growth, consider the following steps:

1. Maintain Healthy Liquidity:
   Continue monitoring working capital closely, ensuring current assets sufficiently cover liabilities to avoid returning to prior liquidity distress.

2. Prudent Dividend Policy:
   Balance dividend payments with reinvestment needs. Excessive dividends can weaken cash reserves necessary for operational flexibility and investment.

3. Revenue Growth Initiatives:
   Explore expanding client base or service offerings in the IT consultancy sector (SIC 62020), leveraging existing expertise to increase turnover and profitability.

4. Cost Control and Efficiency:
   Keep overheads in check, especially personnel costs, while considering strategic hires to support business growth without compromising financial stability.

5. Capital Injection or Financing Plans:
   Prepare for future funding rounds or credit facilities as contingency to support expansion or cushion against market fluctuations.

6. Regular Financial Reviews:
   Implement routine financial "health checks" quarterly to detect early symptoms of distress and adjust strategies promptly.

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Medical Analogy Summary:
Assured Gain Consulting Ltd has transitioned from a "patient" showing signs of liquidity distress to one with a "strong pulse" and "healthy circulation" of assets and equity. Continued careful management and attention to "nutritional" inputs (capital and cash flow) will be essential to sustain this recovery and support growth.

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