COLLAB CONSULTANCY LIMITED

Executive Summary

COLLAB CONSULTANCY LIMITED shows a solid financial foundation typical of a newly established micro-entity with positive net assets and working capital. The company's financial health is currently stable with no immediate liquidity or solvency concerns. To ensure ongoing wellness, focus should be on developing profitable trading operations, monitoring cash flow, and enhancing governance structures as the business grows.

COLLAB CONSULTANCY LIMITED - Analysis Report

Company Number: 15076611

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment: COLLAB CONSULTANCY LIMITED

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1. Financial Health Score: B

Explanation:
The company exhibits strong initial financial stability for a newly incorporated micro-entity. Positive net current assets and net assets indicate a healthy start with a solid equity base. However, as a very young company with limited operational history and modest asset base, the full picture of ongoing financial resilience is yet to be established. Hence, a "B" grade reflects a sound but nascent financial position requiring monitoring as business activities expand.

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2. Key Vital Signs

Metric	Value	Interpretation
Company Age	1 year	New start-up phase; financial patterns are just emerging.
Account Category	Micro	Minimal filing requirements; smaller scale operations.
Fixed Assets	£0	No long-term assets; typical for early-stage consultancy businesses.
Current Assets	£22,223	Cash or equivalents available; healthy liquidity for immediate obligations.
Net Current Assets	£22,223	Working capital is positive; no short-term liquidity concerns ("healthy cash flow" symptom).
Net Assets (Equity)	£22,224	Positive shareholder funds indicate solvency and initial capital injection.
Employees	1	Small operational footprint; low fixed overheads.
Ownership & Control	100% by Director	Concentrated control by a single individual can be a strength or risk depending on governance.

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3. Diagnosis

The financial "vital signs" of COLLAB CONSULTANCY LIMITED reveal a company in the "healthy recovery stage" of early life cycle. The absence of liabilities and positive net current assets reflect no immediate financial distress or liquidity issues. The business appears adequately capitalized with shareholder equity matching net assets, indicating no hidden debts or off-balance-sheet risks at this point.

The lack of fixed assets is typical and not concerning for a consultancy firm whose value lies predominantly in intellectual capital and services rendered. The single employee count confirms a lean operational model, minimizing fixed costs.

However, as a micro-entity with only one set of annual accounts, the "symptoms" of financial health are limited in scope. There is no revenue or profit data disclosed here to assess operational profitability or cash flow trends beyond the snapshot of asset balances. The reliance on a single director-owner is a double-edged sword: it offers streamlined decision-making but may pose governance risks or dependency concerns.

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4. Recommendations

• Monitor Cash Flow Regularly: Maintain close oversight on operating cash flow as the company begins to trade actively. "Healthy cash flow" is crucial to avoid liquidity "symptoms" such as late payments or overdrafts.

• Build a Profit and Loss Track Record: As trading progresses, focus on generating consistent profitability to strengthen reserves and shareholder funds beyond initial capital.

• Consider Asset Investment Carefully: Evaluate the need for fixed assets (e.g., equipment or software) aligned with growth plans to support scalable service delivery.

• Governance & Risk Management: With 100% ownership concentration, consider establishing advisory support or a second director in the medium term to diversify decision-making and mitigate operational risk.

• Plan for Growth: Define strategic objectives for scaling operations, including potential hiring, marketing, and client acquisition to transition from start-up phase to a sustainable business.

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