BLAKE HILL CONSULTING SERVICES LTD

Executive Summary

BLAKE HILL CONSULTING SERVICES LTD exhibits strong financial health characterized by excellent liquidity, positive working capital, and growing retained earnings, indicating a stable and resilient business. The company’s cash flow and equity position are robust, with no immediate signs of financial distress. Focused attention on debtor management and strategic growth planning will help sustain and enhance its financial wellness going forward.

BLAKE HILL CONSULTING SERVICES LTD - Analysis Report

Company Number: 13052552

Analysis Date: 2025-07-20 18:44 UTC

Financial Health Assessment for BLAKE HILL CONSULTING SERVICES LTD

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1. Financial Health Score: Grade A-

Explanation:
BLAKE HILL CONSULTING SERVICES LTD demonstrates strong financial health with a robust liquidity position, positive net assets, and consistent growth in shareholder funds over four years. The company's cash reserves are exceptionally healthy, which is a critical "vital sign" indicating solid operational cash flow and financial stability. The only minor cautionary note is the unusually low debtor balance in 2023 compared to 2022, which may warrant further review. Overall, the company shows no symptoms of financial distress and exhibits a healthy balance sheet profile consistent with a sound private limited company.

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2. Key Vital Signs and Interpretation

Metric	2023 Value	Interpretation
Cash at Bank	£331,612	Very strong cash position ("healthy cash flow"), ensuring good liquidity and ability to meet obligations promptly.
Current Assets	£336,663	Majority held as cash—excellent short-term asset liquidity.
Debtors	£5,051	Sharp reduction from £207,251 in 2022; potentially due to improved collections or changed business model.
Current Liabilities	£29,912	Manageable current debts, well covered by current assets and cash reserves.
Net Current Assets	£306,751	Strong working capital ("healthy working capital"), indicating good short-term financial health.
Net Assets	£306,751	Positive and growing net assets show increasing company value and retained earnings.
Shareholders’ Funds	£306,751	Reflects strong equity base backed by profits and reserves, minimal share capital (£100) indicates value created from operations.
Average Number of Employees	1	Small, likely owner-operated company; low overheads improve financial resilience.

Additional Notes:

• The company is classified as a small company, exempt from audit, which is typical for firms of this size and turnover.
• The director holds 75-100% ownership and voting control, providing strong governance but also concentration risk.
• No overdue filings or compliance issues, indicating good administrative health.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity and Cash Flow: The company has "healthy cash flow" with cash reserves increasing tenfold from 2022 to 2023 (£33k to £331k). This is a very positive symptom, indicating strong cash generation or capital injection.
• Working Capital: Positive net current assets (£306k) show that short-term obligations can be met comfortably without liquidity strain. This is a good sign—no "symptoms of distress" in short-term finances.
• Asset Quality: The drastic drop in debtors from £207k to £5k suggests either improved payment collection or a change in billing patterns. While this is positive for liquidity, it should be monitored to ensure revenue streams remain steady.
• Profit Retention: The growth in profit and loss reserves (from £214k to £306k) indicates retained earnings and an accumulation of business value over time, which is a "healthy metabolic rate" for the business's financial wellbeing.
• Capital Structure: Minimal share capital (£100) with large retained profits implies the business relies on operational profitability rather than external equity financing.
• Business Size and Risk: Operating with a single employee (likely the director) means low fixed costs but also dependency on key person input, which is a "single organ reliance" risk factor.

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4. Recommendations to Improve Financial Wellness

• Maintain Strong Cash Management: Continue to monitor cash flow rigorously to sustain the current strong liquidity position. Avoid tying up cash unnecessarily in long-term assets or slow-paying debtors.
• Review Debtor Management: Investigate the sharp reduction in debtors for sustainability. Ensure that the business is not sacrificing sales or customer relationships to improve collections. A balanced debtor portfolio supports ongoing revenue.
• Diversify Leadership and Skills: Consider expanding the team or engaging additional management resources to reduce "single point of failure" risk and to support growth.
• Plan for Growth or Investment: With solid reserves, the company could explore strategic expansion or capital investments to enhance future revenue streams, ensuring the "body" of the business remains robust.
• Regular Financial Reviews: Keep up-to-date financial reporting and periodic health checks to catch any emerging issues early, similar to regular health screenings.
• Maintain Compliance: Continue timely filing of accounts and returns to avoid penalties and maintain good standing, preserving the company’s "legal health."

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