CLEAR DIAMOND CONSULTING LIMITED

Executive Summary

Clear Diamond Consulting Limited demonstrates strong initial financial health with robust liquidity and equity typical of a well-managed micro consultancy in its first year. The company exhibits no signs of financial distress and holds a solid foundation for future growth. Maintaining disciplined financial management and strategic investment will be key to sustaining this healthy trajectory.

CLEAR DIAMOND CONSULTING LIMITED - Analysis Report

Company Number: 14862575

Analysis Date: 2025-07-20 17:46 UTC

Financial Health Assessment: CLEAR DIAMOND CONSULTING LIMITED

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1. Financial Health Score: A-

Explanation:
For a newly incorporated micro private limited company with a single financial year, CLEAR DIAMOND CONSULTING LIMITED exhibits a very strong liquidity position and solid equity base. The company's net current assets are significantly positive, indicating healthy working capital. The balance sheet is clean, with minimal fixed assets and no indication of overdue filings or distress. The "A-" grade reflects excellent short-term financial health with a caveat that longer-term trends cannot yet be established due to limited operating history.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	923	Minimal investment in long-term assets, typical for a startup consultancy.
Current Assets	154,305	Strong short-term resource base, including cash and receivables.
Current Liabilities	40,301	Short-term obligations, manageable relative to assets.
Net Current Assets (Working Capital)	114,004	Very healthy liquidity cushion, indicating ability to meet short-term debts comfortably.
Total Assets Less Current Liabilities	114,927	Reflects net asset value after settling short-term liabilities; positive and robust.
Shareholders’ Funds (Equity)	114,927	Strong owner investment and accumulated reserves for a new company.
Employees (Average)	1	Small team size consistent with micro category and consultancy nature.

Additional Notes:

• No audit required under micro-entity exemption, which is standard and reduces compliance cost burden.
• No overdue statutory filings, indicating compliance discipline.
• Single director with 75-100% control aligns with small private ownership.

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3. Diagnosis: Financial Symptoms and Overall Health

• Healthy Cash Flow Indicator: The large net current assets suggest the company has a strong buffer to cover immediate liabilities without stress, a sign of "healthy cash flow" and operational stability.
• Minimal Fixed Asset Burden: The low fixed asset base reduces depreciation and maintenance costs but may limit capacity for capital-intensive growth. This is typical and appropriate for a consulting business model.
• No Signs of Financial Distress: No overdue accounts or liabilities exceeding assets. The company shows no symptoms of distress such as negative working capital, large debt, or poor equity position.
• Early Stage but Solid Foundation: Incorporated in May 2023, the company has successfully established an initial equity base and working capital, putting it in a strong position to grow.

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4. Prognosis: Future Financial Outlook

Given the strong liquidity and equity position, the company is well-positioned to navigate early growth phases. The prognosis depends on maintaining positive cash flows and managing expenses as operations scale. Potential risks include overextension if liabilities grow faster than assets or if revenues do not develop as planned, common in new businesses. Active financial monitoring and maintaining the current conservative financial structure will support sustainable growth.

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5. Recommendations

• Maintain Strong Working Capital Management: Continue to monitor receivables and payables to preserve liquidity "health". Avoid accumulating overdue liabilities.
• Plan for Gradual Asset Investment: While fixed assets are low, consider measured investment in technology or equipment as operations expand to enhance productivity.
• Build Financial Reporting and Forecasting: Develop regular cash flow forecasts and budgeting to anticipate funding needs and avoid surprises.
• Explore Revenue Growth Opportunities: Focus on client acquisition and service diversification to increase turnover while controlling costs.
• Compliance Vigilance: Keep up timely filings and statutory compliance to avoid penalties that could strain finances.

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