CHARLES CADOGAN CONSULTING LIMITED

Executive Summary

CHARLES CADOGAN CONSULTING LIMITED is currently solvent but exhibits symptoms of financial stress, notably a sharp decline in liquidity and working capital. The company’s small asset base and limited financial reserves suggest a fragile condition requiring diligent cash flow management and cost control. With prudent financial stewardship, the company can stabilize and gradually improve its financial health.

CHARLES CADOGAN CONSULTING LIMITED - Analysis Report

Company Number: 13620541

Analysis Date: 2025-07-20 14:21 UTC

Financial Health Assessment for CHARLES CADOGAN CONSULTING LIMITED

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1. Financial Health Score: C

Explanation:
The company exhibits modest financial stability with positive net current assets and net assets, but the overall scale and liquidity position are quite limited. The financial "vital signs" show a small buffer of working capital, but a sharp decline in current assets and net assets compared to previous years suggests some emerging financial constraints. The score reflects a company that is currently solvent but with symptoms of financial stress that warrant cautious monitoring and proactive management.

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2. Key Vital Signs

Metric	31-Mar-2024	30-Sep-2022	Interpretation
Current Assets	£3,090	£8,449	Significant reduction in liquid and short-term resources; potential cash flow tightening.
Current Liabilities	£2,500	£5,370	Reduction in short-term obligations, though proportionally less than asset reduction.
Net Current Assets	£590	£3,079	Working capital remains positive but sharply decreased, indicating reduced short-term cushioning.
Net Assets / Shareholders' Funds	£590	£155	Positive net worth increased slightly but remains very low, reflecting a small capital base.
Average Employees	1	1	Stable staffing level consistent with micro-entity status.

Interpretation:

• Liquidity (cash and short-term assets): The drop from £8,449 to £3,090 in current assets is a symptom of reduced financial flexibility. While current liabilities have dropped, the net current assets have shrunk by over 80%.
• Working Capital: The positive but low net current assets (£590) suggest the company can currently meet its short-term obligations, but with minimal margin of safety.
• Solvency: The company remains solvent with net assets positive, but the asset base is quite small, limiting capacity for absorbing shocks or investing in growth.
• Size and Scale: As a micro-entity with only one employee, the operational scale is minimal, which typically correlates with lower financial robustness.

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3. Diagnosis

The company's financial health resembles a patient with a mild but persistent condition: it is "alive" and functioning but shows clear signs of stress from diminished financial reserves and shrinking liquidity. The steep decline in assets and working capital over the last reported period is a warning symptom that cash flow management is becoming tight. The company is currently solvent and compliant with filing requirements, which is positive, but the thin margin of net assets indicates vulnerability to unexpected expenses or downturns in business.

The lack of audit and micro-entity reporting standards means less detailed financial information is available, which limits the ability to fully diagnose profitability and cash flow trends. However, the balance sheet snapshot suggests the company is in a fragile but not critical state.

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4. Recommendations

• Strengthen Cash Flow Management:
  Monitor incoming and outgoing cash meticulously to avoid liquidity crunches. Consider negotiating payment terms with clients and suppliers to optimize working capital.

• Cost Control and Expense Management:
  Given the micro scale, ensure fixed and variable costs are tightly controlled. Avoid unnecessary expenditures that could further erode net assets.

• Build Financial Buffers:
  Aim to rebuild current assets and net current assets over time. This can be through retaining earnings or injecting additional capital if possible.

• Regular Financial Monitoring:
  Even as a micro-entity, establish basic financial health checks quarterly to detect early warning signs of distress.

• Explore Growth Opportunities Carefully:
  Any expansion or investment should be cautiously evaluated to avoid overextension of the limited financial base.

• Engage with Professional Advice:
  Though currently exempt from audit, consider periodic reviews by financial advisors to ensure compliance and identify improvement areas.

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