Company Number: 15267342

Analysis Date: 2025-07-29 16:25 UTC

Financial Health Assessment of C.OLPIN ADVISORY LTD as at 30 November 2024

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1. Financial Health Score: C

Explanation:
C.OLPIN ADVISORY LTD is a very young micro-entity, incorporated in late 2023, with its first set of accounts for the year ending November 2024. The financial health score of C reflects a company that is in its infancy stage, showing some signs of financial strain primarily due to negative net working capital but with a modest positive net asset base. This rating highlights caution but not immediate distress, typical for startups investing in initial operations.

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2. Key Vital Signs (Core Financial Metrics)

Metric	Value (£)	Interpretation
Fixed Assets	1,998	Small investment in long-term assets, indicating limited capital tied up in property or equipment.
Current Assets	364	Very low liquid or short-term assets available to meet immediate obligations.
Current Liabilities	1,628	Short-term debts and obligations exceeding current assets, creating a working capital deficit.
Net Current Assets	-1,264	Negative working capital ("symptom of liquidity stress"), risking difficulty in meeting short-term debts.
Total Assets less Current Liabilities	734	Indicates positive overall asset coverage after short-term liabilities; a slight cushion exists.
Net Assets / Shareholders’ Funds	734	Positive equity indicates some retained value but very modest scale of operations.
Average Number of Employees	1	Very small business, likely owner-operated with minimal staffing cost burden.

Additional Observations:

• The director has introduced funds (£39,289) and paid expenses (£41,820) on behalf of the company, indicating reliance on personal financing to support operations.
• The company has a micro-entity exemption, limiting detailed disclosures and audit requirements, which is common for very small startups.

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3. Diagnosis: What This Financial Data Reveals

• Liquidity Strain: The negative net current assets (working capital) of £-1,264 is a key symptom of short-term liquidity stress. The business does not currently have enough short-term assets to cover its immediate liabilities, which can impede day-to-day operations and supplier payments if not managed carefully.

• Startup Phase Status: The minimal fixed assets and low net asset base reflect that this company is in the very early stages of development, investing modestly in its infrastructure. The financial position is typical for a startup where initial capital injections and director loans support early expenses before generating sustainable revenue.

• Director Support: The director’s financial input acts as a buffer supporting the business during this early stage, which is a positive sign but also a potential dependency risk if external income or investment is delayed.

• Limited Scale & Risk Profile: The micro-entity status and small size reduce complexity but also imply a limited financial cushion against adverse business shocks. The company’s ability to scale and improve financial stability depends heavily on future operational performance.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Liquidity Management:

   • Prioritize improving current assets (e.g., cash generation, faster receivables collection).
   • Negotiate longer payment terms with suppliers to ease immediate cash outflows.

2. Increase Capital Base:

   • Consider additional director loans or equity investment to build a stronger capital foundation and reduce working capital deficits.

3. Revenue Growth Focus:

   • Accelerate client acquisition and billing cycles to convert consultancy efforts into cash inflows promptly.

4. Expense Control:

   • Monitor and control expenses carefully to avoid further reliance on director financing; consider budgeting and cash flow forecasting.

5. Financial Reporting:

   • While exempt from audit, maintaining detailed internal financial records and forecasts will help identify potential distress symptoms early.

6. Regular Financial "Check-ups":

   • Schedule periodic financial reviews to monitor liquidity, profitability, and solvency indicators as the business evolves.

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Medical Analogy Summary

C.OLPIN ADVISORY LTD shows "symptoms of early-stage financial strain," primarily due to negative working capital indicating "liquidity distress." However, the "healthy" positive net asset balance and director's financial support act as a "vital sign" suggesting the business is currently stable but vulnerable. Without intervention to improve cash flow and capital reserves, the risk of financial "illness" (insolvency) could increase.

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