CLABON CONSULTING LTD

Executive Summary

CLABON CONSULTING LTD exhibits strong financial health characterized by positive and growing net assets, healthy liquidity, and sound compliance practices. The company’s stable working capital and clean filings signal a financially resilient enterprise with potential for measured growth. Continued focus on cash flow management and strategic reinvestment will support ongoing financial wellness.

CLABON CONSULTING LTD - Analysis Report

Company Number: 13568271

Analysis Date: 2025-07-29 19:54 UTC

Financial Health Assessment for CLABON CONSULTING LTD

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1. Financial Health Score: A-

Explanation:
CLABON CONSULTING LTD demonstrates strong and improving financial health for a micro-entity. The company maintains robust net current assets relative to current liabilities, showing a healthy liquidity position. Its net assets have grown steadily over the last three years, indicating accumulated retained profits or capital injections, suggesting a stable and solvent business foundation. The A- grade reflects a generally excellent financial position with minor considerations typical for a young and small-scale consultancy.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	95,985	81,868	Healthy increase, showing good liquidity and cash or receivables growth.
Current Liabilities	22,673	22,877	Stable short-term debt, manageable relative to assets.
Net Current Assets (Working Capital)	74,300	58,991	Strong positive working capital indicates the company can comfortably cover short-term debts.
Net Assets (Equity)	74,300	58,991	Growing net asset base signals accumulation of retained earnings or capital, good solvency.
Average Employees	1	1	Very small workforce consistent with micro-entity status, low overhead.
Filing Status	Up to date	Up to date	Timely filings reduce legal and financial risk.

Interpretation:

• The company shows healthy cash flow and liquidity ("vital signs") with net current assets far exceeding current liabilities.
• Net assets have increased approximately 26% year-on-year, a strong symptom of steady business growth or retained profitability.
• The micro entity filing regime and exemption from audit reflect simplicity but also a clean compliance status, which is good for financial transparency.

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3. Diagnosis

Based on the financial data and company profile, CLABON CONSULTING LTD is in a stable and healthy condition financially:

• The liquidity position is strong, meaning the company has sufficient short-term assets to meet its immediate obligations without stress. This indicates no symptoms of cash flow distress.
• The company’s net assets are positive and growing, reflecting accumulated profits or capital, suggesting a profitable or well-capitalised business. This supports the diagnosis of ongoing solvency and financial resilience.
• Being a micro entity, the company operates with a lean structure (1 employee/director), reducing overhead risks and supporting sustainable operations.
• Timely filing of accounts and returns indicates good governance and compliance, important for avoiding penalties and maintaining stakeholder confidence.
• As an IT consultancy (SIC 62020), the company is in a sector with good growth potential; however, growth prospects may be limited by size and market conditions.

No current symptoms of financial distress such as increasing liabilities, negative working capital, or overdue filings are observed.

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4. Recommendations

To maintain or improve financial wellness, CLABON CONSULTING LTD should consider the following actions:

• Continue Monitoring Cash Flow: Maintain positive working capital and monitor receivables closely to ensure cash inflows remain steady, especially important for consultancy models with project-based revenue.
• Profit Retention & Growth Strategy: Consider reinvesting profits to build capital reserves or expand service offerings to grow net assets further and improve market position.
• Cost Control: With a small team, overheads are low, but continue to control costs tightly to preserve profitability.
• Client Diversification: Avoid overreliance on a few clients to reduce revenue volatility risks.
• Prepare for Scaling: If growth is planned, explore options for hiring, marketing, or strategic partnerships, but maintain financial discipline to avoid overextension.
• Maintain Compliance: Keep filing deadlines and regulatory requirements up-to-date to avoid penalties and maintain a clean financial record.

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