C LIDDLE CONSULTANCY LTD

Executive Summary

C LIDDLE CONSULTANCY LTD demonstrates a solid start with positive liquidity and equity, reflecting stable financial health typical of a micro-entity in its first year. While current metrics show no signs of distress, enhancing cash reserves and diversifying income will be key to building long-term resilience. Focused financial planning and governance improvements are recommended to support sustainable growth.

C LIDDLE CONSULTANCY LTD - Analysis Report

Company Number: 14457955

Analysis Date: 2025-07-29 12:50 UTC

Financial Health Assessment for C LIDDLE CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
C LIDDLE CONSULTANCY LTD shows early-stage but stable financial health typical of a micro-entity in its first full financial year. The company maintains positive net current assets and net assets, indicating a healthy liquidity position and a positive equity base. However, the modest size of assets and reserves, alongside limited financial history, suggests room for growth and resilience improvement. Therefore, a "B" grade reflects sound initial stability with potential for strengthening financial robustness.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	5,117	Cash, receivables, and short-term assets available to cover immediate obligations.
Current Liabilities	3,541	Debts and obligations due within one year.
Net Current Assets	1,576	Positive working capital indicating ability to meet short-term liabilities from current assets.
Net Assets / Shareholders' Funds	1,576	Equity base representing the residual interest in assets after liabilities; small but positive.
Number of Employees	2	Small workforce consistent with micro-entity classification, supporting lean operations.
Company Age	~1 year	Newly incorporated, limiting the depth of financial history to assess trends.
Control Structure	Majority held by Mr. Christopher John Liddle (75-100%)	Clear ownership and control can aid swift decision-making but concentration risk exists.

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3. Diagnosis: Financial Health Overview

C LIDDLE CONSULTANCY LTD presents as a young, micro-sized private limited company operating in the niche of "Other sports activities" (SIC 93199). With just over a year since incorporation, the company’s financial vital signs show "healthy cash flow" fundamentals — positive net current assets and net assets indicate the business is not facing immediate financial distress or liquidity crunch. The balance sheet reveals a modest but positive equity base, reflecting initial capital and retained earnings.

The micro-entity status means simplified reporting, with no audit requirement, so the financial data is less granular but still reliable for initial analysis. The "symptoms" show no signs of over-leverage or insolvency risk; current liabilities are well covered by current assets. The small workforce supports lean operational costs, suiting the consultancy business model.

However, the limited scale of assets and equity signals the company is in an early growth phase, with vulnerability to adverse market or operational shocks. The concentrated ownership and director roles help with agility but also concentrate governance risk.

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4. Recommendations for Financial Wellness Improvement

• Build Cash Reserves: Continue to strengthen net current assets by managing receivables and controlling payables to create a buffer for unexpected expenses or downturns.
• Diversify Revenue Streams: Explore expanding client base or service offerings within the sports consultancy niche to stabilize income and reduce reliance on few contracts.
• Formal Financial Planning: Develop a rolling cash flow forecast and budget to anticipate liquidity needs and investment opportunities.
• Governance & Risk Management: Consider appointing an independent non-executive adviser or developing formal governance practices to mitigate risks associated with concentrated director control.
• Monitor Key Ratios Regularly: Keep track of liquidity ratios (current ratio), profitability, and working capital trends as the company grows to detect early warning signs of financial stress.
• Prepare for Scaling: As the company grows beyond micro thresholds, plan for the increased complexity of accounting and compliance to avoid filing delays or penalties.

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Medical Analogy Summary

C LIDDLE CONSULTANCY LTD is like a young patient with stable vital signs and no acute symptoms of financial distress. The "heart" of the business — liquidity and equity — is healthy but still developing. With proactive "wellness checks" (financial monitoring) and "nutritional support" (cash reserves and diversification), the company can build resilience and thrive in its growth phase.

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