CLARE BROSNAN CONSULTING LTD

Executive Summary

CLARE BROSNAN CONSULTING LTD is financially healthy with strong liquidity and positive net assets, typical for a micro consultancy. However, a slight decline in cash and working capital signals the need for vigilant cash flow management to maintain stability. Proactive monitoring and cost control will support sustained financial wellness and growth potential.

CLARE BROSNAN CONSULTING LTD - Analysis Report

Company Number: 12843283

Analysis Date: 2025-07-20 14:49 UTC

Financial Health Assessment for CLARE BROSNAN CONSULTING LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable financial position with positive net current assets and shareholders’ funds over the last four years. The cash reserves remain healthy relative to current liabilities, indicating good liquidity. However, there is a slight decline in net current assets and cash from 2023 to 2024, which suggests early signs of cash flow tightening but not yet critical. The company’s size and financial simplicity (micro-business) limit complexity but also mean resilience depends heavily on cash flow management and maintaining low liabilities.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Current Assets	19,005	22,305	Slightly reduced; mainly cash
Cash at Bank	18,963	22,263	Healthy liquidity but decreasing
Debtors	42	42	Minimal trade receivables, low credit risk
Current Liabilities	5,166	7,274	Reduced liabilities, positive sign
Net Current Assets	13,839	15,031	Positive working capital, but declining
Shareholders Funds	13,839	15,031	Equity remains positive, indicating net assets
Number of Employees	1	1	Micro entity, low overheads
Share Capital	100	100	Minimal capital, typical for micro businesses

Interpretation:

• Liquidity (Cash vs. Liabilities): The company maintains a strong buffer of cash over short-term debts (cash is roughly 3.7 times current liabilities in 2024), indicating a “healthy cash flow” symptom with low risk of immediate liquidity distress.
• Working Capital: Positive net current assets reflect operational liquidity and ability to meet short-term obligations comfortably.
• Trend: Although still healthy, cash and net current assets have declined slightly year-on-year, which might be an early symptom of tighter cash management or reduced profitability.
• Size & Structure: As a micro private limited company with one director/employee, the business is lean but potentially vulnerable to single-person dependence and limited financial flexibility.

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3. Diagnosis

CLARE BROSNAN CONSULTING LTD exhibits a financially healthy condition typical of a small, well-managed consultancy business. The company is solvent with positive equity and sufficient liquidity to cover current liabilities comfortably. The stable debtor position and low liabilities indicate prudent credit and expense management.

However, the slight erosion of cash reserves and net current assets from 2023 to 2024 could suggest early signs of financial “fatigue” or reduced incoming cash flows, possibly due to market conditions or temporary business slowdown. This is not yet critical but warrants attention to avoid progression to financial stress.

The absence of fixed assets and minimal share capital is normal for this business model but means the company relies heavily on cash generation from operations rather than asset backing.

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4. Recommendations

1. Strengthen Cash Flow Monitoring:
   Implement or enhance cash flow forecasting to anticipate and manage any future tightening of liquidity. Monitor client payment terms and promptly follow up on receivables.

2. Manage Costs Proactively:
   Review operating expenses regularly to identify any areas where costs can be controlled or deferred without impacting service quality.

3. Build a Contingency Reserve:
   Aim to rebuild cash reserves back to or above previous levels (£22k+) to create a buffer against unexpected expenses or revenue dips.

4. Diversify Client Base:
   If feasible, pursue additional clients or projects to diversify income streams and reduce dependency on a few sources.

5. Consider Shareholder Funding or Loans:
   If growth is planned or cash flow pressures increase, explore options for additional funding to maintain liquidity and invest in business development.

6. Maintain Compliance and Reporting:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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Medical Analogy Summary:
The company’s “vital signs” (cash flow, working capital, equity) are currently within healthy ranges, indicating a strong financial pulse. The slight decline in cash reserves is a mild symptom of potential future liquidity strain but not yet a cause for alarm. With timely intervention focused on cash flow management and expense control, the business can maintain good financial health and avoid the risk of “financial distress.”

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