BAINES MANAGEMENT CONSULTING LTD

Executive Summary

BAINES MANAGEMENT CONSULTING LTD demonstrates robust financial health with strong liquidity, growing net assets, and positive working capital, indicating a well-managed and solvent business. The company’s financial "vital signs" show no signs of distress, positioning it well for sustainable growth. Continued prudent financial management and strategic reinvestment are recommended to maintain this healthy trajectory.

BAINES MANAGEMENT CONSULTING LTD - Analysis Report

Company Number: 12538183

Analysis Date: 2025-07-29 12:42 UTC

Financial Health Assessment of BAINES MANAGEMENT CONSULTING LTD

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1. Financial Health Score: A- (Strong)

Explanation: The company demonstrates strong financial health with consistent growth in net assets and positive working capital. Cash reserves are robust relative to liabilities, and shareholders’ funds have increased steadily. The slight deduction in score from a perfect A is due to modest current liabilities growth and the company being relatively young with a small asset base.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Cash and Cash Equivalents	79,529	Healthy cash flow; strong liquidity buffer.
Current Liabilities	29,812	Manageable short-term obligations.
Net Current Assets (Working Capital)	49,717	Excellent short-term financial health; sufficient to cover liabilities.
Net Assets	42,609	Solid equity base; positive retained earnings.
Share Capital	101	Minimal initial capital; typical for a small company.
Growth in Net Assets (2023-2024)	+57%	Strong capital growth indicating profitability or retained earnings.

Additional Observations:

• The company is classified as a Small Private Limited Company engaged in management consultancy (SIC 70229).
• It has maintained compliance with filing deadlines, showing no overdue accounts or returns.
• Only one employee/director actively involved, indicating a lean operation.

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3. Diagnosis

BAINES MANAGEMENT CONSULTING LTD exhibits the "vital signs" of a financially fit company:

• Liquidity: The cash position is strong and growing (£79,529 in 2024 vs £56,372 in 2023), indicating a healthy cash flow situation with no immediate liquidity distress.
• Working Capital: The net current assets (working capital) stand at £49,717, which is well above current liabilities (£29,812). This suggests good short-term financial stability and operational efficiency.
• Solvency: Net assets have increased from £27,173 in 2023 to £42,609 in 2024, showing an accumulation of retained earnings and a growing equity base. This strengthens the company's solvency and provides a buffer against future uncertainties.
• Capital Structure: The company shows a typical small business capital structure, with low share capital but growing retained reserves, indicating reinvestment of profits.
• Asset Base: The company holds minimal fixed tangible assets (£56), which aligns with its consultancy nature, relying more on intellectual capital than physical assets.
• Governance: The company is led by a director who also owns 75-100% of shares, centralizing control but also reflecting focused management.

There are no symptoms of financial distress such as negative working capital, significant overdue liabilities, or declining net assets. The steady increase in net assets and cash reserves suggests sound financial management and a growing, profitable business.

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4. Recommendations

To maintain and enhance financial wellness, the company should consider:

• Cash Flow Monitoring: Continue to closely monitor cash inflows and outflows to maintain the strong liquidity position, especially as the company grows or takes on new clients.
• Liability Management: Keep an eye on the growth of current liabilities to prevent them from outpacing current assets; negotiate favourable payment terms where possible.
• Profit Retention and Reinvestment: Use accumulated reserves to invest in business development, marketing, or technology to sustain growth.
• Diversify Client Base: To reduce business risk, ensure the company is not overly reliant on a small number of clients.
• Financial Reporting: Although currently unaudited, consider voluntary audits or more detailed financial reporting to enhance credibility with larger clients or lenders.
• Succession Planning: Given the concentrated ownership and management, consider plans to mitigate risks associated with key person dependency.

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