Company Number: 14120418

Analysis Date: 2025-07-29 18:15 UTC

Financial Health Assessment of CALVERT LEE LIMITED as of 30 September 2024

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1. Financial Health Score: B

• Explanation: The company demonstrates solid improvement in net assets and working capital, indicating strengthening financial stability. However, the relatively small asset base and limited fixed assets suggest moderate operational scale and asset backing. The absence of audit (typical for micro-entities) and minimal fixed assets limit deeper insight into operational robustness. Overall, the financial "vital signs" are generally healthy but show room for growth and resilience enhancement.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	658	1,074	Very low fixed asset base, indicating minimal investment in long-term assets—typical for consultancy services.
Current Assets	107,637	114,257	Healthy level of current assets, predominantly cash or short-term receivables, showing liquidity strength.
Current Liabilities	32,298	86,992	Significant reduction in short-term obligations, signalling improved liquidity management and reduced short-term financial stress.
Net Current Assets (Working Capital)	75,339	27,265	Strong working capital growth, indicating a "healthy cash flow" and capacity to cover short-term debts comfortably.
Net Assets (Equity)	75,997	28,339	Over 2.5x increase in equity, reflecting retained earnings or capital injection, strengthening the company’s financial "immune system".
Shareholders' Funds	75,997	28,339	Equity mirrors net assets, fully funded by shareholders without apparent debt, indicating low financial leverage risk.

Additional Notes:

• Average employees remain at 2, consistent with a micro-entity.
• No audit required due to micro-entity status, limiting financial scrutiny.
• Company is active, not in liquidation or administration, with timely filings and no overdue returns.

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3. Diagnosis: Financial Condition and Underlying Health

CALVERT LEE LIMITED exhibits the "symptoms of a financially stable micro-enterprise." The substantial increase in net current assets and net equity between 2023 and 2024 suggests effective management of liquidity and capital. The significant reduction in current liabilities points to improved creditor payment cycles or lower short-term borrowing, reducing financial strain.

However, the company's very limited fixed assets and small scale indicate a business model reliant on human capital and intangible assets rather than physical infrastructure—a common trait in management consultancy firms (SIC 70229). This model can be both a strength (low overhead) and a vulnerability (limited tangible asset collateral).

The micro-entity exemption from audit means financial statements have not undergone intensive external review, so while no red flags are apparent, some operational or financial risks may be less visible.

The company’s ownership structure, with a single individual holding 75-100% control, suggests centralized decision-making, which can be efficient but may also concentrate risk.

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4. Recommendations: Steps to Improve Financial Wellness

• Maintain and Monitor Cash Flow: Continue to build on strong working capital management to ensure liquidity remains robust, especially important in a consultancy where cash inflows can be project-based.
• Consider Asset Investment: If business growth is targeted, evaluate opportunities to invest in fixed assets or technology that could enhance service delivery and operational efficiency.
• Risk Diversification: Explore diversifying client base or service offerings to mitigate dependency risk inherent in small consultancies.
• Financial Controls and Audit Considerations: As the company grows, consider moving beyond micro-entity exemptions to voluntary audit or independent review for enhanced credibility with clients and lenders.
• Succession and Governance Planning: Given the concentrated ownership, develop contingency plans and governance structures to protect continuity and reduce concentration risk.
• Regular Financial Health Checks: Schedule periodic reviews of liquidity ratios, debtor days, and creditor terms to detect any emerging financial "symptoms" early.

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