CLEAR QUBE CONSULTING LIMITED

Executive Summary

Clear Qube Consulting Limited shows a sound financial position with strong liquidity and positive working capital, reflecting healthy cash flow and prudent financial management during its first operational period. The company’s financial "vital signs" indicate stability and solvency, though close attention to tax liabilities and governance will be critical as the business grows. Maintaining disciplined financial controls and planning will support sustainable growth and continued financial wellness.

CLEAR QUBE CONSULTING LIMITED - Analysis Report

Company Number: 14820476

Analysis Date: 2025-07-29 15:49 UTC

Financial Health Assessment of CLEAR QUBE CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
The company exhibits generally healthy financial "vital signs" with positive net current assets and net assets, reflecting a stable financial foundation. However, there are some yellow flags such as relatively high current liabilities mainly due to taxation and social security costs, which require close monitoring. The business is young (incorporated 2023), so its financial history is limited, and it is currently in a growth or establishment phase. Overall, the company is financially sound but should maintain vigilance to sustain its health.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£120,584	Adequate liquid resources, mostly cash, indicating good short-term liquidity ("healthy cash flow").
- Cash	£115,584	High cash balance relative to liabilities, a positive sign of available working capital.
- Debtors	£5,000	Low receivables, suggesting prompt payment from clients or limited credit sales.
Current Liabilities	£45,953	Includes tax and social security liabilities and a directors’ loan; manageable but warrants monitoring.
Net Current Assets	£74,631	Positive working capital ("healthy pulse"), enabling the company to meet short-term obligations comfortably.
Net Assets (Equity)	£75,066	Positive equity indicates the company is solvent and has a cushion against losses.
Share Capital	£200	Minimal share capital; most equity comes from retained earnings/profit.
Employees	3	Small team consistent with a micro to small enterprise, manageable overheads likely.
Tangible Fixed Assets	£435	Minimal fixed assets, reflecting a service-oriented business model with low capital expenditure.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Liquidity & Cash Flow: The company shows a "healthy cash flow" with £115,584 cash on hand, significantly exceeding current liabilities. This suggests strong short-term liquidity and the ability to cover immediate expenses without distress.

• Working Capital: Positive net current assets of £74,631 indicate good working capital management. The company can comfortably meet its short-term liabilities, a sign of financial stability.

• Profitability & Equity Build-Up: Although detailed profit and loss figures are not disclosed, the profit and loss reserve of £74,866 shows accumulated retained earnings, evidencing profitability since inception and prudent reserve building.

• Debt & Obligations: Current liabilities include a sizeable tax and social security liability (£44,741), which is common for a company in its first financial year as tax accrues. The directors’ loan account is minimal (£1,212), indicating limited related-party debt.

• Asset Base: Fixed assets are minimal (£435), characteristic of consulting firms that rely more on intellectual capital than physical assets. This reduces depreciation burden but means the company depends heavily on its human resources and contracts.

• Company Age & Stage: Being incorporated in April 2023 and filing accounts for a period ending September 2024, the company is in an early growth phase. Its financials show no signs of distress or insolvency.

• Governance & Control: Directors and persons with significant control hold substantial voting rights and share ownership, which can aid in swift decision-making but requires careful governance to avoid conflicts of interest.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Maintain Cash Reserves Prudently: Continue to monitor and manage cash flow carefully to ensure tax and social security liabilities are settled timely to avoid penalties.

2. Plan for Tax Payments: The current high tax liability signals the importance of regular tax planning and possibly setting aside funds monthly to smooth out cash flow impacts.

3. Strengthen Debtor Management: Although debtor levels are low, establish clear credit control policies to maintain prompt payments as client base grows.

4. Review Directors’ Loan Account: Keep the directors' loan account minimal and formalized to avoid tax complications or governance concerns.

5. Prepare for Growth: As the company scales, consider investing in systems or software to manage financial reporting and compliance more efficiently.

6. Governance Transparency: Given concentrated ownership and control, ensure robust governance policies and documentation to safeguard stakeholder confidence.

7. Monitor Liabilities: Keep a close watch on current liabilities, especially tax-related, to avoid liquidity strain as business activities expand.

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Executive Summary