CATHY WELLINGS CONSULTING LIMITED

Executive Summary

CATHY WELLINGS CONSULTING LIMITED currently maintains a solid financial footing typical of a micro-entity, with good liquidity and solvency metrics. While recent minor declines in net assets suggest cautious attention is needed, the company shows no immediate signs of distress. Focused cash flow management and cost control will be key to sustaining financial health and supporting future growth.

CATHY WELLINGS CONSULTING LIMITED - Analysis Report

Company Number: 14305894

Analysis Date: 2025-07-20 16:58 UTC

Financial Health Assessment: CATHY WELLINGS CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
The company exhibits a stable financial position for a micro-entity with positive net current assets and net assets consistently above £3,000. The balance sheet shows a healthy liquidity buffer relative to its current liabilities, indicating good short-term financial health. However, the slight decline in net assets from £3,757 to £3,232 in the latest year signals early symptoms of asset depletion or reduced capital base, warranting close monitoring.

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2. Key Vital Signs

Metric	2024	2023	Interpretation
Current Assets	£3,599	£4,708	Decrease indicates some reduction in liquid resources or receivables.
Current Liabilities	£368	£952	Significant reduction, improving liquidity position and lowering short-term obligations.
Net Current Assets (Working Capital)	£3,231	£3,756	Positive and ample working capital signals ability to meet short-term debts comfortably.
Net Assets (Shareholders’ Funds)	£3,232	£3,757	Positive net assets show the business is solvent but a decline may indicate use of reserves or losses.
Average Employees	1	1	Small workforce consistent with micro company status.

Interpretation of Vital Signs:

• Liquidity: Healthy cash and short-term assets relative to liabilities, suggesting no immediate cash flow distress.
• Solvency: Positive net assets indicate the company’s total assets exceed liabilities, a sign of solvency and financial stability.
• Trend: The modest drop in assets and net current assets hints at early signs of resource consumption or less efficient asset management, a potential symptom of operational challenges or reinvestment activities.

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3. Diagnosis

CATHY WELLINGS CONSULTING LIMITED presents with a stable but cautious financial profile typical of a micro-entity in its early years (incorporated in 2022). The company currently enjoys a "healthy cash flow" state — evidenced by positive working capital and low current liabilities — which is crucial for meeting day-to-day operational expenses without financial strain.

However, the slight reduction in net assets and current assets year-on-year acts as a symptom of mild financial stress or resource consumption. This could be due to reinvestment, lower profitability, or increased expenditure. Given the company’s small scale and single-employee structure, these fluctuations are not uncommon but should be carefully managed to avoid progression toward financial distress.

No off-balance sheet liabilities or audit exemptions raise no red flags, supporting the assessment of a sound accounting approach and transparent financial reporting.

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4. Recommendations

To strengthen financial wellness and mitigate emerging symptoms:

• Monitor Cash Flow Closely: Maintain tight control over receivables and payables to preserve liquidity. Consider preparing monthly cash flow forecasts to anticipate any shortfalls early.
• Cost Control: Review operating expenses carefully to ensure they align with revenue generation, avoiding unnecessary depletion of capital reserves.
• Profitability Analysis: Conduct regular profit and loss reviews to identify any downward trends in income or rising costs that may impact net assets.
• Capital Injection or Reserves: If feasible, consider an equity infusion or retaining earnings to rebuild net asset strength and provide a buffer against unforeseen expenses.
• Business Development: Explore opportunities to increase client base or service offerings in the management consultancy sector to boost revenue streams.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

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