Company Number: 14402988

Analysis Date: 2025-07-20 11:22 UTC

Financial Health Assessment for Belmont Consultancy Ltd (as of 31 October 2024)

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1. Financial Health Score: A-

Explanation:
Belmont Consultancy Ltd displays a robust and healthy financial condition for a micro-entity in its second full year of operation. The company shows strong liquidity, solid net assets, and a sound equity base, indicating stability and growth potential. The A- grade reflects a near-excellent financial position with minor points to monitor related to director balances.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£63,235	Indicates investment in long-term resources; stable compared to prior year, showing consistent asset base.
Current Assets	£831,203	Strong current assets suggest excellent short-term resource availability, primarily cash or receivables.
Current Liabilities	£109,412	Current debts are manageable; company can comfortably cover these liabilities with current assets.
Net Current Assets (Working Capital)	£721,791	Very healthy working capital, indicating smooth operational liquidity and buffer against short-term shocks.
Total Assets Less Current Liabilities	£785,026	Shows strong overall asset position after covering short-term liabilities.
Shareholders' Funds (Equity)	£785,026	Equity equals net assets, indicating no excessive debt and a well-capitalised company.
Share Capital	£102	Nominal capital, typical for micro companies, with most funding likely through retained earnings or loans.
Director Loan/Advance Balance	£262,245 (owed to director)	Significant balance owed by the company to a director; interest is charged, but this should be monitored carefully.

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3. Diagnosis: Financial Health Overview

Belmont Consultancy Ltd shows symptoms of a strong and healthy financial system. The company’s liquidity is excellent, with current assets vastly exceeding current liabilities, indicating a "healthy cash flow" scenario and strong operational cash management. The steady increase in net assets and shareholders’ funds over the past two years reflects retained profits and/or capital injections, signalling growth and effective financial stewardship.

The presence of a substantial director loan balance (£262k) is a notable "symptom" that requires attention. While such loans can provide flexible financing, they also introduce a risk factor if not managed transparently or if the company’s ability to repay is compromised. The interest charged at 2.25% mitigates some risk, reflecting a market-based approach rather than an informal loan.

The company operates in the management consultancy sector (SIC 70229), which typically has low capital expenditure needs, aligning with the modest fixed asset base. The average employee count is 2, consistent with a small, focused consultancy.

No overdue filings or compliance issues are present, indicating good governance and regulatory adherence, which is a positive "vital sign" for overall corporate health.

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4. Recommendations: Actions to Enhance Financial Wellness

• Monitor Director Loan Balance:
  Establish a clear repayment plan or consider restructuring the director loan to ensure it does not strain company finances or create solvency risks. Transparent accounting and communication with stakeholders about this liability will improve trust and reduce financial stress.

• Maintain Strong Liquidity Management:
  Continue the practice of keeping a strong buffer of current assets over liabilities. This "healthy cash flow" approach should be maintained to safeguard against unexpected expenses or market downturns.

• Plan for Growth Investment:
  With solid equity and working capital, the company is well-positioned to consider investing in growth opportunities, such as marketing or technology upgrades, to expand consultancy services.

• Regular Financial Reviews:
  Conduct periodic financial health checks similar to this assessment to detect early "symptoms" of distress or opportunity, enabling proactive management.

• Documentation and Compliance:
  Keep up timely filings and maintain transparent financial records to uphold regulatory trust and avoid penalties.

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