BOTHAR CONSULTING LTD

Executive Summary

Bothar Consulting Ltd is a micro-sized civil engineering consultancy showing signs of financial stabilization after a prior period of distress. While the company currently maintains positive working capital and shareholder funds, its financial buffers remain thin, warranting careful cash flow management and reserve building to ensure future stability and growth potential.

BOTHAR CONSULTING LTD - Analysis Report

Company Number: NI668916

Analysis Date: 2025-07-20 13:39 UTC

Financial Health Assessment for BOTHAR CONSULTING LTD

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1. Financial Health Score: C

Explanation:
The company is currently solvent with positive net current assets and shareholder funds, but the scale of its assets and reserves is very modest, and it has shown some volatility in recent years. The micro-entity size and absence of employees indicate a very small operation, possibly with limited trading activity. This score reflects a stable but fragile financial condition, akin to a patient recovering from an illness but still requiring careful monitoring.

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2. Key Vital Signs (Core Financial Metrics)

Metric	Latest (2024)	Interpretation
Current Assets	£4,493	Modest level of liquid assets to cover short-term debts; smaller than previous years.
Current Liabilities	£3,691	Debts due within one year, manageable given current assets.
Net Current Assets	£802	Positive working capital indicates ability to meet short-term obligations.
Shareholders’ Funds (Equity)	£802	Small positive equity, showing residual value after liabilities.
Profit & Loss Reserve	Not separately reported but implied positive equity.
Number of Employees	0	No staff employed, possibly indicating low operational activity or reliance on contractors.
Account Category	Micro	Simplified filing thresholds, suggesting a very small scale.
Trend Over 4 Years	Fluctuating	Equity dropped negative in 2022 but recovered by 2024.

Interpretation:
The company exhibits the "vital signs" of a small, low-activity business. The positive but minimal working capital and shareholder funds show it can sustain operations but with a lean cushion. The dip into negative equity in 2022 was a symptom of financial distress but has since improved, indicating some recovery or capital injection.

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3. Diagnosis: Overall Financial Condition

The financial "symptoms" tell a story of a micro-sized consulting business in the civil engineering sector, possibly project-based with low overheads. The absence of employees and minimal assets suggest a lean operation, perhaps owner-operated.

The key concern was the negative net current assets and shareholders' funds in 2022—a clear "symptom of distress" that could have led to cash flow or solvency risks. However, the latest accounts show a modest but positive recovery, indicating the company has stabilized its "financial health" and is not currently in distress.

The low level of equity and working capital means the company has very limited "financial reserves" to absorb shocks or invest in growth. This fragile state is like a patient with a mild chronic condition who requires ongoing care to prevent relapse.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Cash Flow Management:
   Ensure timely collection of receivables and control of payables to maintain and ideally increase net current assets. Healthy cash flow is the "heartbeat" of business viability.

2. Build Financial Reserves:
   Aim to increase retained profits or inject additional capital to strengthen shareholder funds. This acts as the "immune system," providing resilience against unforeseen expenses or downturns.

3. Review Cost Structure:
   With no employees, fixed costs may be low, but regular review of all expenses can improve profitability and support sustainable operations.

4. Strategic Growth Planning:
   Consider opportunities to expand client base or diversify services cautiously, ensuring any growth is supported by adequate working capital.

5. Regular Financial Monitoring:
   Keep close watch on key financial indicators quarterly, like working capital and equity, to catch early signs of distress and intervene promptly.

6. Compliance and Filing:
   Continue to file accounts and confirmation statements on time to maintain good standing and avoid penalties.

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