CQC CONSULTING SERVICES LIMITED

Executive Summary

CQC Consulting Services Limited has demonstrated a significant turnaround in financial health, moving from negative equity to a positive position with healthy liquidity as of August 2024. While still a small-scale operation, the company shows promising signs of stability and solvency, but should focus on maintaining cash flow and expanding operational capacity to support sustainable growth.

CQC CONSULTING SERVICES LIMITED - Analysis Report

Company Number: 13560236

Analysis Date: 2025-07-20 14:48 UTC

Financial Health Assessment of CQC CONSULTING SERVICES LIMITED

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1. Financial Health Score: B-

Explanation:
CQC Consulting Services Limited has shown a marked improvement in its financial position over the past year, moving from net current liabilities and negative shareholders' funds to a positive net current asset position and positive equity of £5,417 by August 2024. This suggests a recovery and healthier liquidity position. However, the relatively modest asset base and current asset levels imply caution, as the company is still in early growth phases with limited scale and financial cushioning.

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2. Key Vital Signs

Metric	2024 Figure	Interpretation
Current Assets	£14,633	Adequate short-term resources (cash + debtors)
Cash	£10,175	Healthy cash flow; good liquidity buffer
Debtors	£4,458	Collectible receivables support operations
Current Liabilities	£9,216	Obligations due within one year; manageable
Net Current Assets	£5,417	Positive working capital; short-term stability
Shareholders' Funds	£5,417	Positive equity indicates solvency
Number of Employees	1	Micro business scale
Account Category	Unaudited Abridged	Limited disclosure; data less detailed but typical for small company

Interpretation:

• The positive net current assets ("healthy blood flow") indicate the company can cover immediate debts, a crucial sign of operational stability.
• The cash reserve is strong relative to liabilities, indicating no immediate cash flow distress symptoms.
• The turnaround from previous years’ negative equity ("symptom of financial distress") to positive shareholders’ funds suggests effective management interventions or capital injections.
• Being a micro-sized business with only one employee, it likely has limited operational complexity but also limited financial resilience.

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3. Diagnosis

CQC Consulting Services Limited is in a recovering and stabilizing financial condition. The company has overcome earlier "symptoms" of financial weakness, such as negative equity and net liabilities, moving towards a more "healthy" financial status with positive working capital and shareholder funds. The increase in current assets, especially cash, suggests improved cash flow management or possibly new capital input.

However, the company's small scale and unaudited abridged accounts limit the depth of diagnosis. The reliance on a single director and employee points to operational concentration risk. The financial data does not show profitability figures, so while the balance sheet is improving, the income statement health remains unknown.

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4. Recommendations

• Maintain and Monitor Cash Flow: Continue to ensure a "healthy cash flow" by closely managing receivables and payables. Implement cash flow forecasting to anticipate liquidity needs.
• Build Financial Resilience: Consider building retained earnings and reserves over time to buffer against unexpected expenses or downturns.
• Expand Financial Reporting: As the company grows, consider moving beyond abridged accounts to fuller financial disclosures to provide better insight for stakeholders and improve credibility.
• Diversify Operational Risk: With only one employee/director, consider operational contingency planning, such as delegating responsibilities or hiring additional personnel to mitigate risk of disruption.
• Strategic Growth Planning: Use the current stable position as a foundation to explore business development opportunities within the management consultancy sector while controlling costs.
• Seek Professional Financial Advice: To optimize tax efficiency and financial structuring as the business evolves.

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