Company Number: 12844311

Analysis Date: 2025-07-20 11:34 UTC

Financial Health Assessment of BERKELEY CARTER LIMITED

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1. Financial Health Score: B

Explanation:
BERKELEY CARTER LIMITED demonstrates solid financial footing with a strong net asset position and positive working capital. The company maintains a healthy cash reserve relative to short-term liabilities, indicating good liquidity. However, the presence of long-term creditors without clear offsetting fixed assets or revenue details introduces some caution. Overall, the financial "vital signs" are stable but warrant monitoring of liabilities and cash flow trends.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Current Assets	£51,005	Healthy short-term assets available to meet immediate obligations.
Cash at Bank	£35,020	Strong cash position, but decreased from £47,492 in 2022; requires attention to cash flow management.
Debtors	£15,985	Moderate receivables indicating business activity; must be monitored for collection efficiency.
Current Liabilities	£2,556	Significantly reduced from previous year (£8,641), reducing short-term financial pressure.
Long-term Creditors	£9,595	Introduction of long-term liabilities in 2023; these could be loans or deferred payments requiring future cash outflow.
Net Current Assets (Working Capital)	£48,449	Positive and improving, indicating the company can comfortably cover short-term debts.
Net Assets / Shareholders’ Funds	£38,854	Solid equity base relative to liabilities; financial "heart" is strong.
Share Capital	£100	Minimal share capital suggesting a small equity base, typical for private limited companies.

Additional Observations:

• The company is classified as a small entity under the small companies regime and has exemption from audit.
• The average number of employees is 1, reflecting a very small operation.
• The company operates in management consultancy (SIC 70229), an industry typically with low fixed assets and variable cash flow.

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3. Diagnosis: What the Financial Data Reveals

The company exhibits symptoms of financial health including a strong working capital position and net assets that have improved from prior years. The reduction in current liabilities and increase in net current assets indicate improved liquidity and operational efficiency.

However, the appearance of long-term creditors in 2023 (£9,595) introduces a new financial obligation that may impact future cash flow. Without detailed income or profit and loss data, it is difficult to fully assess profitability or operational cash generation. The cash balance has decreased compared to the prior year, which could be a natural business cycle or a sign of increased cash outflows.

The balance sheet shows no fixed assets, suggesting the company relies heavily on intangible assets such as consulting expertise, which is typical for its industry.

Overall, the company is financially stable but relies on maintaining liquidity and managing its new long-term obligations carefully. The "pulse" of the business is steady but should be monitored for any signs of cash flow distress.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Cash Flow Management:

   • Monitor cash flow closely to ensure the reduced cash balance does not signal liquidity stress.
   • Consider preparing rolling cash flow forecasts to anticipate any shortfalls, especially with the new long-term creditor obligations.

2. Debtor Management:

   • Implement or review credit control policies to ensure timely collection of receivables (£15,985).
   • Reduce days sales outstanding to improve cash conversion cycle.

3. Liabilities Review:

   • Clarify terms and repayment schedule of the long-term creditors (£9,595) to prepare for future cash commitments.
   • Explore opportunities to refinance or restructure debt if repayment terms are onerous.

4. Profitability Analysis:

   • Although profit and loss details were not filed, the company should regularly analyze profitability metrics to ensure sustainable operations.
   • Consider budgeting and variance analysis to track financial performance.

5. Strategic Growth:

   • Evaluate business development opportunities to increase turnover and improve scale.
   • Maintain low fixed cost structure to remain agile in the consultancy market.

6. Compliance and Governance:

   • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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