BARKER BROS CONSULTING LTD

Executive Summary

BARKER BROS CONSULTING LTD demonstrates strong financial health with robust liquidity and increasing shareholder equity typical of a young, well-managed consulting firm. The company shows no signs of distress, maintains compliance, and has a solid foundation for future growth. Continued focus on cash flow management and strategic investment will support sustainable expansion.

BARKER BROS CONSULTING LTD - Analysis Report

Company Number: 13262612

Analysis Date: 2025-07-20 12:53 UTC

Financial Health Assessment: BARKER BROS CONSULTING LTD

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1. Financial Health Score: B+

Explanation:
For a micro-entity private limited company in management consultancy, the financials show a solid and steadily improving liquidity position, positive net assets, and consistent shareholder funds growth. While the absolute values are modest, they are healthy relative to the company’s size and industry. The lack of fixed assets is typical for a consultancy. The score reflects a financially stable but early-stage business with good working capital management and no signs of distress.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£7,910	Healthy cash and short-term assets have more than doubled since 2021, indicating improved liquidity.
Current Liabilities	£149	Very low short-term obligations, minimal risk of liquidity crunch.
Net Current Assets	£7,861	Positive working capital signifies the company can cover its short-term debts comfortably.
Net Assets (Shareholders Funds)	£7,861	Company equity has nearly doubled since 2022, showing retained earnings or capital injections.
Fixed Assets	£0	Typical for a consultancy firm relying on human capital rather than physical assets.
Employees	2	Small, stable team consistent with micro-entity classification.
Filing Status	Up-to-date	No overdue accounts or returns; good compliance healthy for company reputation.

Interpretation:
The company exhibits "healthy cash flow" fundamentals, with more current assets than current liabilities — a key symptom of strong operational liquidity. The steady increase in net assets is a positive sign of financial growth and stability. The absence of fixed assets is common in service-oriented consultancies and not a concern here.

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3. Diagnosis

The financial "vital signs" indicate Barker Bros Consulting Ltd is in good financial health for its size and sector. The company’s strong liquidity, positive net assets, and growing shareholders’ funds suggest it is managing its finances prudently. The small team size and low liabilities reduce operational risks. There are no symptoms of financial distress such as negative working capital, increasing debt, or overdue filings.

Given it is a young company (incorporated in 2021), the growth in current assets and equity signals sound business development and effective cash management. The lack of fixed assets is not alarming since it is a consultancy, relying on intellectual and human capital rather than tangible assets.

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4. Recommendations

To maintain and improve financial wellness, consider the following:

• Maintain strong liquidity: Continue to monitor working capital closely to avoid any cash flow "tightness," especially as the company grows or takes on more projects.
• Build reserves: Aim to increase retained earnings to provide a buffer against future uncertainties or economic downturns.
• Consider investment in technology: Although fixed assets are currently zero, selective investment in software or technology could improve productivity and client service.
• Plan for scaling: If expanding, develop a financial plan that accounts for hiring, marketing, and potential short-term liabilities.
• Regular financial review: Continue timely filing and review of financial results to catch any early warning signs of stress.
• Explore tax efficiency: Engage with a tax professional to optimize any allowances or reliefs available for small consultancies.
• Document strategic goals: Align financial management with growth plans to ensure sustainable scaling.

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