Company Number: 13564335

Analysis Date: 2025-07-20 15:27 UTC

Financial Health Assessment for Clare Evans Consultancy Ltd

---

1. Financial Health Score: B

Explanation:
Clare Evans Consultancy Ltd demonstrates a strong improvement in liquidity and net asset position over recent periods, indicating healthy financial vitality. However, as a micro-entity with a very small asset base and a sole employee/director structure, it remains vulnerable to operational risks and cash flow fluctuations. The absence of debt and positive working capital are encouraging but the company should maintain vigilance in sustaining these metrics.

---

2. Key Vital Signs

Metric	Latest (2024-12-31)	Interpretation
Fixed Assets	£448	Minimal fixed assets consistent with consultancy nature; low capital intensity.
Current Assets	£105,020	Significant increase, mainly likely cash or receivables, indicating strong liquidity.
Current Liabilities	£30,196	Moderate short-term obligations; manageable given current assets.
Net Current Assets	£74,824	Positive and substantial working capital; healthy “cash flow pulse” ensuring operational stability.
Net Assets / Shareholders’ Funds	£75,272	Strong equity base growth from £4,154 in prior period; indicates profitability or capital injection.
Average Employees	1	Very small operation; single-person business model, which limits scalability and diversifies risk.

---

3. Diagnosis: What the Financial Data Reveals

• Liquidity and Cash Flow: The company enjoys a "healthy cash flow," evidenced by net current assets soaring from £3,770 in 2023 to £74,824 in 2024. This suggests the business has either increased client payments, improved collection efficiency, or possibly received capital injections or director loans that were repaid (note: director loan was fully repaid in 2024).

• Capital Structure: The net assets grew significantly from £4,154 to £75,272, showing strong capital retention or fresh equity infusion. This is a positive symptom indicating the business is building a solid financial foundation.

• Operational Scale: With only one employee (the director), the business operates on a micro scale, typical for consultancy services. This means its financial health is closely tied to the director’s capacity and business development efforts.

• Financial Stability: No sign of distress such as overdue filings, negative working capital, or accumulating liabilities. The company is not over-leveraged, and its balance sheet is clean.

• Growth and Sustainability: The leap in current assets and net assets suggests recent growth, which bodes well for sustainability if maintained. However, reliance on a single individual and limited asset base are cautionary signs for future resilience.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Diversify Revenue Streams: To reduce business risk and improve sustainability, consider expanding client base or service offerings beyond the current scope.

• Maintain Cash Flow Vigilance: Although current liquidity is strong, continue monitoring receivables and payables closely to avoid future cash flow bottlenecks.

• Build Reserves: Allocate a portion of profits to a contingency reserve fund to cushion against unexpected downturns or expenses.

• Plan for Growth: Consider investing modestly in technology or marketing to increase operational capacity beyond the single-employee model.

• Seek Professional Advice: Regular financial reviews with an accountant or business advisor will help maintain compliance and optimise tax planning.

---