BLUECHIP REVIEW LTD

Executive Summary

BLUECHIP REVIEW LTD exhibits sound financial health with stable liquidity and increasing equity, appropriate for a micro-sized IT consultancy. The company shows no signs of financial distress but remains in a growth phase with opportunities to enhance cash flow management and asset investment. Continued prudent financial oversight and strategic scaling will support sustainable development.

BLUECHIP REVIEW LTD - Analysis Report

Company Number: 13956894

Analysis Date: 2025-07-29 16:30 UTC

Financial Health Assessment for BLUECHIP REVIEW LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates stable and positive financial metrics with consistent net current assets and shareholders' funds growth over two years. The balance sheet shows healthy liquidity and equity, typical for a micro-entity in its early years. The absence of audit requirements and a small employee base align with its micro classification. However, the company’s relatively low fixed asset base and modest scale limit the score from reaching an A. Overall, BLUECHIP REVIEW LTD is financially sound but still in a growth phase.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	1,936	661	Small increase indicates gradual investment in long-term assets, typical for IT consultancy.
Current Assets	40,601	37,738	Healthy level of liquid and short-term assets supporting operational needs.
Current Liabilities	(31,205)	(28,412)	Short-term obligations are manageable relative to current assets.
Net Current Assets	9,396	9,326	Positive working capital indicates ability to cover short-term debts (healthy cash flow).
Total Assets Less Current Liabilities	11,332	9,987	Indicates total net assets after covering short-term liabilities, showing improvement.
Shareholders Funds	11,332	9,987	Equity backing the company, increasing steadily, suggesting retained earnings or capital input.
Number of Employees	2	2	Small team consistent with micro company size, manageable overheads.

Interpretation of Vital Signs:

• The company shows a stable liquidity position, with current assets comfortably exceeding current liabilities.
• The gradual increase in fixed assets and shareholders’ funds reflects cautious growth and reinvestment.
• Net current assets are positive and stable, indicating no immediate liquidity distress or cash flow issues.
• The small workforce and micro classification indicate limited operational complexity but also constrained capacity for rapid scaling.

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3. Diagnosis: Financial Condition of BLUECHIP REVIEW LTD

BLUECHIP REVIEW LTD’s financial “vitals” mirror those of a young but steadily growing patient in good health. It has a robust liquidity position, evidenced by positive net current assets, and the equity base is expanding, which provides a buffer against financial shocks. The company operates within its means, with current liabilities well covered by current assets.

No symptoms of financial distress are apparent such as negative working capital, declining equity, or excessive liabilities. The company’s fixed asset base remains small but growing, which is typical for an information technology consultancy relying more on intellectual capital than heavy physical assets.

The micro-entity status means it benefits from simplified filing and lower compliance costs, appropriate for its size and operational scope. The directors appear diligent, with timely filings and no overdue accounts or returns.

However, the company is still in an early stage of maturity, so while stable, it is vulnerable to external shocks or operational setbacks due to its size and limited resource base.

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4. Recommendations to Improve Financial Wellness

• Enhance Cash Flow Monitoring: Although liquidity is currently healthy, implementing more detailed cash flow forecasting can help anticipate short-term funding needs and avoid any unexpected shortages.
• Build Fixed Asset Base Strategically: Consider investing in technology or software tools that can increase operational efficiency and client delivery capacity, as this will strengthen asset backing for future growth.
• Expand Revenue Base: Explore diversified service offerings or market segments within IT consultancy to reduce dependency on a narrow client base, improving financial resilience.
• Maintain Low Leverage: Avoid taking on excessive debt; maintain the positive working capital position to preserve financial flexibility.
• Plan for Scaling Workforce: As business grows, plan carefully for hiring to balance operational capacity with overhead costs, maintaining profitability.
• Regular Financial Health Reviews: Continue periodic assessments of financial ratios such as liquidity, profitability, and solvency to catch any early warning signs of distress.

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