BOLTON ENERGY CONSULTANTS LIMITED

Executive Summary

Bolton Energy Consultants Limited shows strong financial health for a micro-entity, with solid liquidity and equity positions indicating operational stability. While the company is well-positioned currently, enhancing financial disclosure and governance practices will support sustainable growth and risk mitigation. Continued focus on cash flow and strategic investment can help the business thrive in the competitive engineering consultancy sector.

BOLTON ENERGY CONSULTANTS LIMITED - Analysis Report

Company Number: SC744502

Analysis Date: 2025-07-29 19:48 UTC

Financial Health Assessment: Bolton Energy Consultants Limited

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1. Financial Health Score: B

Explanation:
Bolton Energy Consultants Limited presents a solid financial position for a micro-entity in its early years of operation. The company shows healthy net current assets and positive shareholders’ funds, indicating good liquidity and a stable equity base. However, the limited scale of fixed assets and modest size, as well as lack of an income statement filed publicly, suggest a cautious B grade, reflecting sound but still developing financial robustness.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	1,563	Very low asset base typical for service consulting; no heavy investment in physical capital.
Current Assets	58,885	Healthy short-term resources, mainly cash or receivables, providing good liquidity.
Current Liabilities	9,635	Manageable short-term obligations, well covered by current assets.
Net Current Assets	49,250	Positive working capital, indicating ability to cover short-term debts comfortably.
Total Assets Less Current Liabilities	50,813	Reflects overall net assets, a positive sign of financial stability.
Shareholders' Funds	50,813	Equity backing is strong relative to liabilities — the company is well-capitalised.
Employee Numbers	2	Small workforce consistent with micro-entity status, limiting operational scale.
Director Advances	0 (repaid)	Directors had previous loans which were cleared, removing a potential liability.

Additional Notes:

• The company is exempt from statutory audit, typical for micro-entities, which limits external assurance but aligns with its size.
• The company has timely filing of accounts and confirmation statements, indicating good compliance discipline.
• Stable control structure with two directors holding significant ownership and voting rights, implying clear governance.

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3. Diagnosis: Financial Condition and Business Health

Bolton Energy Consultants Limited exhibits the "vital signs" of a financially healthy micro business in the consulting sector:

• Liquidity: The "healthy cash flow" symptom is evident from strong net current assets. The company can meet its short-term obligations without distress, which is critical for operational stability.
• Solvency: Shareholders' funds exceed liabilities comfortably, like a heart pumping well-oxygenated blood, supporting ongoing business activities and absorbing potential shocks.
• Asset Structure: Fixed assets are minimal, typical of a consulting firm, focusing on intellectual capital over physical assets. This reduces exposure to depreciation risk but limits collateral for borrowing.
• Growth & Scale: Employee count and asset size indicate a small but stable operation. Lack of profit and loss data restricts insight into profitability trends; however, director loans repaid suggest sound cash management.
• Governance: Clear control by two directors with substantial shareholdings provides strong decision-making but may limit diversity of oversight.

Symptoms of Concern:

• Limited financial history due to recent incorporation (2022) means prognosis relies heavily on current snapshot rather than trend analysis.
• Absence of detailed income or cash flow statements means potential underlying operational risks (e.g., profitability, receivables ageing) are unknown.
• Reliance on director funding was present but appears resolved, which is positive.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Financial Transparency:
   Consider filing fuller accounts including profit and loss statements voluntarily to provide stakeholders a clearer picture of operational performance and profitability trends.

2. Strengthen Working Capital Management:
   Maintain or improve net current assets through effective receivables collection and cost control to sustain liquidity, especially as business scales.

3. Plan for Growth Investment:
   Evaluate opportunities for strategic investment in technology or human resources (consultants) to expand service offerings, balanced against maintaining a healthy balance sheet.

4. Formalize Governance Practices:
   Introduce periodic financial reviews and possibly independent advisory oversight to mitigate risks of concentrated control and bring fresh perspectives.

5. Monitor Cash Flows Closely:
   As a consulting firm, cash flow can be cyclical; instituting rigorous cash flow forecasting will help anticipate shortfalls or funding needs early.

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