Company Number: 14785106

Analysis Date: 2025-07-20 12:50 UTC

Financial Health Assessment for BALI CONSULTING LIMITED

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1. Financial Health Score: B (Good)

Explanation:
For a company incorporated recently in 2023, BALI CONSULTING LIMITED exhibits a solid financial footing with positive net current assets and net assets, indicative of healthy liquidity and solvency. The absence of debt pressure and positive shareholders’ funds support this. However, as a new enterprise with limited historical data and modest scale, there is room for growth and strengthening of financial resilience to reach an A-grade, which typically requires consistent profitability and scalable operations.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£13,585	Adequate short-term resources; mostly cash which supports liquidity.
Cash at Bank	£13,051	Strong cash position—a vital sign of healthy cash flow.
Debtors	£534	Low receivables, suggesting prompt collection or low credit sales.
Current Liabilities	£2,201	Manageable short-term obligations; low risk of liquidity distress.
Net Current Assets	£11,384	Positive working capital, showing the company can cover short-term debts comfortably.
Net Assets (Equity)	£11,384	Reflects sound solvency and equity buffer for absorbing shocks.
Share Capital	£2,000	Seed capital invested by shareholders, typical for a micro company.
Profit and Loss Reserve	£9,384	Accumulated retained earnings, indicating initial profitability or capital injection.
Employee Count	2	Very small workforce, consistent with micro/small company status.
Filing Status	Up to date	No overdue financial or compliance filings, indicating good governance.

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3. Diagnosis: Financial Health Overview

BALI CONSULTING LIMITED is in the "early life" stage of its business cycle. The company demonstrates healthy financial vital signs akin to a patient showing strong pulse and clear breathing after a recent procedure. Its positive net current assets and net assets indicate no immediate liquidity or solvency distress—akin to a patient with stable vital signs.

The strong cash position (£13,051) is particularly encouraging, reflecting good cash generation or capital injections, which is critical for a young consultancy business. Minimal debt and liabilities reduce financial strain and risk of short-term distress.

The modest level of debtors (£534) suggests efficient credit management or limited credit sales, reducing risk of bad debts and supporting cash flow health.

However, as a newly incorporated company (April 2023) with a small employee base, it is still in the growth and development phase. The financial statements are unaudited but prepared in accordance with relevant small company standards. The directors have confirmed going concern status, indicating management confidence in ongoing operations.

The company’s activity in management consultancy (SIC 70229) is service-driven and typically has low fixed assets and capital requirements, consistent with the balance sheet profile.

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4. Recommendations for Financial Wellness Improvement

a. Enhance Revenue Streams and Profitability

• Focus on expanding client base and increasing consultancy projects to grow turnover.
• Monitor profit margins closely to build retained earnings and financial cushioning.

b. Strengthen Cash Flow Management

• Maintain strong cash reserves but ensure cash is efficiently used to fuel growth initiatives.
• Consider setting up regular cash flow forecasts to anticipate liquidity needs.

c. Monitor Debtor Days and Credit Risk

• Although current debtors are low, as sales grow, implement strict credit control to avoid cash flow "symptoms of distress."

d. Build Financial Reporting and Controls

• As the company grows, consider moving beyond exemption from audit to enhance financial scrutiny and stakeholder confidence.

e. Plan for Scalability and Workforce Expansion

• Prepare for gradual increase in employees as business expands, balancing cost control with service quality.

f. Maintain Compliance and Governance

• Continue timely filing and good governance practices to avoid penalties and reputational risk.

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