BLUEOAK CONSULTING LIMITED

Executive Summary

BLUEOAK CONSULTING LIMITED shows a stable financial position with positive net assets and growing liquidity, typical of a young micro-entity. While current financial health is sound, the company operates with limited working capital and scale, necessitating cautious cash flow management and strategic planning to build resilience and support future growth.

BLUEOAK CONSULTING LIMITED - Analysis Report

Company Number: 13763095

Analysis Date: 2025-07-29 19:26 UTC

Financial Health Assessment: BLUEOAK CONSULTING LIMITED

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1. Financial Health Score: B-

Explanation:
BLUEOAK CONSULTING LIMITED demonstrates a modest but stable financial position typical of a micro-entity early in its lifecycle. The company shows positive net current assets and net assets growth year-on-year, indicating a "healthy cash flow" relative to its size, but the absolute values remain small, reflecting limited financial "resilience" if faced with unexpected expenses or downturns. The score "B-" reflects solid foundational health but limited scale and working capital cushions.

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2. Key Vital Signs (Critical Metrics)

Metric	2024 Value	Interpretation
Current Assets	£8,205	Cash and short-term resources have nearly quadrupled since 2021, indicating improving liquidity.
Current Liabilities	£7,761	Increased liabilities parallel to assets; manageable but close to current assets.
Net Current Assets (Working Capital)	£444	Small positive buffer; company can cover short-term debts with current resources, but margin is tight.
Net Assets (Equity)	£444	Equity increased steadily, showing retained earnings or capital injections, but remains modest.
Employee Count	1	Very lean operation; low fixed overheads, reducing financial strain.
Control Structure	Single individual owns 75-100% shares and voting rights	Centralized control, potentially facilitating swift decision-making but also concentration risk.

Interpretation:
The company has "healthy cash flow" relative to its liabilities, with positive working capital that indicates it can meet short-term obligations without distress. However, the narrow margin (working capital of £444) suggests "symptoms of fragility," as any unexpected cost or delayed income could strain liquidity.

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3. Diagnosis: Overall Financial Condition

BLUEOAK CONSULTING LIMITED is in a stable but nascent financial state, characteristic of a young micro-entity with limited operational scale. The company shows consistent growth in current assets and shareholders' funds over the past three years, suggesting prudent financial management and possibly incremental profitability or capital input.

The "vital signs" reveal no acute distress such as negative working capital or net liabilities, which is reassuring. However, the modest size of net assets and working capital means the company lacks a significant financial "immune system" to absorb shocks or invest heavily in growth without additional capital.

The fact that the company operates with a single employee and is in consultancy and IT services (sectors with variable income streams) suggests that cash flow management is critical and currently managed adequately.

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4. Recommendations: Actions to Improve Financial Wellness

1. Build a Larger Working Capital Buffer:
   Aim to increase the net current assets to at least cover 3-6 months of operating expenses. This "financial stamina" will protect against cash flow interruptions.

2. Diversify Income Streams and Clients:
   Reducing reliance on a small number of contracts or clients can improve revenue stability and reduce risk of sudden income loss.

3. Maintain Prudent Expense Management:
   Keep overheads low given the micro entity size but plan for modest investment in marketing or technology to support growth.

4. Consider External Financing or Capital Injection:
   If growth opportunities arise, seek appropriate funding to avoid liquidity strain, ensuring any debt or equity financing aligns with business strategy.

5. Regular Financial Monitoring and Forecasting:
   Implement rolling cash flow forecasts and scenario planning to detect early symptoms of financial distress, enabling proactive management.

6. Formalize Succession and Control Planning:
   Given control concentration with one individual, consider governance arrangements to mitigate risks related to key person dependency.

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