CRG CONSULTANTS LTD

Executive Summary

CRG CONSULTANTS LTD has made significant financial recovery in its latest year, moving from negative equity and working capital to a positive financial position. While the company shows improved liquidity and solvency akin to stabilizing vital signs, it remains small and reliant on director support. Focused efforts on cash management, debtor control, and equity strengthening will help sustain and enhance financial wellness going forward.

CRG CONSULTANTS LTD - Analysis Report

Company Number: 12811084

Analysis Date: 2025-07-20 15:18 UTC

Financial Health Assessment for CRG CONSULTANTS LTD

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1. Financial Health Score: B

Explanation:
CRG CONSULTANTS LTD shows marked improvement from prior years, moving from negative shareholders’ funds and net current liabilities to a positive net current asset position and positive equity in the latest financial year. The company has demonstrated a recovery in working capital and equity, signaling strengthening financial health. However, the modest scale of assets and equity, alongside reliance on director support, tempers the rating from an A to a solid B.

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2. Key Vital Signs

Metric	2024 Figure	Interpretation
Current Assets	£16,080	Indicates available liquid resources and receivables; healthy growth from previous nil balance.
Cash at Bank	£4,080	Positive cash balance after previous years with zero cash—shows improved liquidity.
Debtors (Trade Receivables)	£12,000	Represents money owed by customers; improvement from zero year before; needs monitoring.
Current Liabilities	£5,078	Short-term obligations; increased but manageable relative to current assets.
Net Current Assets (Working Capital)	£11,002	Positive net working capital indicates the company can meet short-term obligations comfortably.
Shareholders’ Funds (Equity)	£11,002	Shift from negative equity in prior years to positive equity shows improving financial stability.
Share Capital	£2.00	Nominal share capital; capital base is minimal, typical for small private companies.
Employees	2	Small workforce consistent with company size and industry.

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3. Diagnosis: Financial Symptoms and Underlying Health

• Recovery from Distress:
  The company exhibited symptoms of financial distress in earlier years (2020-2023) with consistent negative net current assets and shareholders’ funds. This indicated an inability to cover short-term debts with available assets, akin to a patient with poor circulation struggling to deliver resources where needed.

• Improved Liquidity and Solvency:
  The 2024 accounts show a healthy cash flow and receivables position, boosting liquidity. The positive net current assets are like a patient’s vital signs stabilizing after treatment. The shift to positive equity indicates the company has repaired its capital base, reducing insolvency risk.

• Reliance on Director Support:
  Notes reveal the majority of net assets relate to a loan to the director, who does not intend to draw on it, providing a financial cushion. This is similar to a patient relying on ongoing care to maintain health; while effective, it points to underlying fragility in self-sustaining operations.

• Modest Scale and Growth Potential:
  The company remains small with limited assets and a small workforce but operates in management consultancy—a sector where intellectual capital and client relationships are critical. The financial “pulse” shows responsiveness but limited reserves.

• No Audit and Small Company Regime:
  Exemption from audit implies fewer regulatory burdens but also less external scrutiny. This is typical and not a negative symptom but suggests the need for internal diligence.

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4. Recommendations: Prescriptions for Financial Wellness

1. Enhance Cash Reserves:
   Maintain or increase cash balances to strengthen the company’s ability to handle unexpected expenses or downturns—like building immune resilience.

2. Manage Debtors Efficiently:
   Monitor and accelerate collection of trade receivables to avoid liquidity "blockages." Consider credit checks or payment terms review to reduce risk.

3. Build Equity Base:
   Explore possibilities to increase share capital or retained earnings through profitable operations or capital injections to reduce dependence on director loans.

4. Cost Control and Revenue Growth:
   Focus on sustainable growth strategies to increase turnover and profitability, ensuring the company’s financial health is self-sustaining.

5. Regular Financial Monitoring:
   Implement monthly or quarterly financial reviews to detect early signs of distress and respond proactively, akin to routine health check-ups.

6. Document Income Statement:
   Although exempt, consider preparing detailed profit and loss accounts for internal use to better understand income streams and expense drivers.

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