BRISTOL ENERGY CONSULTING LIMITED

Executive Summary

Bristol Energy Consulting Limited shows a stable financial foundation typical for a start-up, with positive working capital and healthy liquidity. While early-stage reliance on director loans and modest equity indicate some financial vulnerability, prudent cash management and growth planning can improve its financial health and resilience. Timely diversification of funding and profit retention are key to sustaining future financial wellness.

BRISTOL ENERGY CONSULTING LIMITED - Analysis Report

Company Number: 15054600

Analysis Date: 2025-07-20 15:28 UTC

Financial Health Assessment of Bristol Energy Consulting Limited

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1. Financial Health Score: B-

Explanation:
As a recently incorporated small private limited company (incorporated August 2023), Bristol Energy Consulting Limited shows initial financial stability with positive net current assets and modest shareholder equity. However, the company carries director loans and some longer-term creditor obligations, indicating reliance on internal financing and external creditors. Given the early stage and limited operational history, the score reflects a cautious but generally stable financial condition with room for growth and risk mitigation.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	13,952	Adequate short-term resources (cash + inventories).
Cash at Bank	10,202	Healthy liquidity cushion to cover immediate expenses.
Current Liabilities	11,037	Short-term debts slightly less than current assets, indicates manageable working capital.
Net Current Assets (Working Capital)	2,915	Positive working capital (current assets - current liabilities) signals ability to meet short-term obligations.
Creditors Due After One Year	1,048	Long-term obligations present but relatively small.
Net Assets (Equity)	1,867	Positive equity, though modest, reflects initial capital and retained earnings.
Loans from Directors (Current Liability)	10,217	Significant director loan represents internal financing; requires monitoring for repayment terms.
Average Employees	1	Very small operation, typical for a micro/small company.

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3. Symptoms Analysis and Diagnosis

• Healthy Cash Flow Indicators:
  The company holds a healthy cash balance (£10,202) relative to current liabilities (£11,037), which suggests liquidity is sufficient to cover short-term debts. This is a positive "heartbeat" for operational continuity.

• Working Capital:
  Positive net current assets (£2,915) indicate the company is not under immediate financial distress and can cover its short-term obligations without needing to liquidate fixed assets or seek urgent external financing.

• Balance Sheet Structure:
  The presence of director loans (£10,217) as part of current liabilities is a double-edged sword. While it shows internal support, it also means the company depends heavily on its directors for funding rather than external credit or operational cash flow. This could be a symptom of early-stage funding needs but requires clear repayment plans to avoid cash flow strain.

• Equity and Net Assets:
  Modest net assets (£1,867) reflect the early stage of the business lifecycle. The company has retained earnings (profit and loss account) slightly above the share capital, showing some profitability or capital growth since inception.

• Long-Term Obligations:
  Creditors due after more than one year (£1,048) are low, which is positive as the company does not appear over-leveraged long-term.

• Size and Scale:
  With only one employee, the company is in a micro/small scale operational stage, typical for a startup or consulting business. This limits overhead but also constrains revenue generation capacity.

• No Overdue Filings or Regulatory Issues:
  The company is current on accounts and confirmation statement filings, indicating good compliance "vital signs."

Overall Diagnosis:
Bristol Energy Consulting Limited is in a stable but nascent financial condition typical for a start-up consulting firm. It demonstrates sufficient liquidity and positive working capital, mitigating immediate financial distress. However, reliance on director loans and modest equity levels indicate sensitivity to cash flow fluctuations and the need for careful financial planning as it grows.

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4. Prognosis and Recommendations

Prognosis:
If the company maintains prudent cash management, secures new clients, and gradually builds retained earnings, its financial health should improve, moving toward a stronger equity base and reduced reliance on director loans. However, failure to diversify funding sources or generate sustainable profits could strain liquidity and increase financial risk.

Recommendations:

1. Diversify Financing Sources:
   Consider reducing reliance on director loans by exploring small business loans, grants, or equity investment to strengthen the balance sheet and reduce short-term liabilities.

2. Cash Flow Management:
   Maintain a focus on monitoring cash inflows and outflows to ensure continued ability to meet liabilities without incurring overdrafts or emergency borrowing.

3. Build Profit Reserves:
   Aim to increase retained earnings through profitable contracts and efficient cost control to build a buffer against future uncertainties.

4. Plan for Growth:
   Evaluate opportunities to scale operations cautiously, potentially increasing staffing and investment in marketing to grow revenue streams sustainably.

5. Regular Financial Review:
   Conduct quarterly financial health checks to identify early warning signs such as deteriorating working capital or increasing debt ratios.

6. Formalize Loan Terms:
   Document director loans with clear repayment schedules and interest terms to formalize obligations and improve transparency for future stakeholders or lenders.

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