C&S LESLIE CONSULTING LIMITED

Executive Summary

C&S Leslie Consulting Limited is a nascent but stable small consulting firm with modest financial strength and minimal working capital buffer. The company’s liquidity and solvency are currently adequate but fragile, requiring careful cash flow management to avoid distress. By focusing on enhancing working capital and maintaining disciplined financial controls, the company can improve its financial health and support sustainable growth.

C&S LESLIE CONSULTING LIMITED - Analysis Report

Company Number: SC792362

Analysis Date: 2025-07-29 18:29 UTC

Financial Health Assessment of C&S Leslie Consulting Limited as at 31 December 2024

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1. Financial Health Score: C

Explanation:
Given that C&S Leslie Consulting Limited is a newly incorporated small private limited company with modest financial figures, the financial health score is a "C". This reflects a stable but nascent financial position with limited working capital and modest net assets. The company is showing basic financial functionality but still has early-stage vulnerabilities typical of a start-up in the construction consulting sector.

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2. Key Vital Signs

Vital Sign	Value (£)	Interpretation
Current Assets	25,320	Adequate short-term assets to cover near-term needs
Cash on Hand	12,666	Healthy liquidity component within current assets
Debtors	12,654	Reasonable receivables, potentially good client base
Current Liabilities	24,862	Current obligations nearly equal current assets
Net Current Assets	458	Very thin working capital, slight buffer only
Fixed Assets	783	Small investment in tangible assets
Net Assets (Equity)	1,045	Positive but minimal shareholder equity
Share Capital	100	Small initial capital contribution
Profit & Loss Reserves	945	Accumulated earnings retained in the business

Interpretation of Vital Signs:

• Liquidity: The company has a "healthy cash flow" symptom with £12,666 in cash, which is about half of total current assets. However, its net current assets (working capital) are only £458, indicating that short-term liabilities almost consume current assets, leaving a very slim margin for error or unexpected expenses.
• Solvency: Positive net assets (£1,045) indicate the company is solvent, but the margin is very narrow, reflecting an early stage with limited equity cushion.
• Asset Management: The tangible fixed assets are modest (£783), typical for a consulting business with minimal capital expenditure.
• Revenue Recognition: The notes indicate that turnover is recognized carefully by stage of completion on contracts, suggesting prudent revenue and cost matching.

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3. Diagnosis: Overall Financial Condition

C&S Leslie Consulting Limited exhibits the "symptoms of a young but stable business." The financial statements show that the company is just off the ground, with positive but minimal net assets and a very narrow working capital buffer. The company’s current liabilities nearly match its current assets, signaling tight liquidity management but leaving little room for operational shocks, such as delayed receivables or unexpected expenses.

The company is not burdened by debt beyond normal trade creditors and tax liabilities, which suggests no immediate distress signals. The directors have chosen not to audit the accounts, permissible under small company exemptions, which is common practice at this scale but implies limited external financial assurance.

With only one employee (likely a director) and modest asset investment, the company is lean and focused on consulting activities, which aligns with its SIC classification in specialized construction services.

Underlying Risks:

• Very low working capital means the company must carefully manage cash flow to avoid liquidity squeeze.
• The balance between debtors and creditors is tight; any delay in collecting receivables could cause cash flow strain.
• As a new company (incorporated Dec 2023), it lacks financial history and established profitability trends.

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4. Prognosis: Future Financial Outlook

If the company maintains disciplined cash management, continues to grow its client base steadily, and controls costs prudently, it should be able to build a stronger working capital cushion and improve its equity base. The lack of significant debt and reasonable receivables position it well for sustainable growth.

However, the prognosis warns about "symptoms of vulnerability" due to thin liquidity. The company should monitor its cash conversion cycle closely and avoid overextending credit to clients.

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5. Recommendations to Improve Financial Wellness

• Enhance Working Capital: Seek to increase net current assets by accelerating debtor collections and managing payables efficiently to improve liquidity buffer.
• Build Cash Reserves: Prioritize retaining earnings and building cash reserves to withstand operational fluctuations.
• Financial Forecasting: Implement rolling cash flow forecasts to anticipate and mitigate liquidity risks proactively.
• Cost Control: Maintain tight control over operational expenses to preserve profitability and avoid eroding equity.
• Explore Financing Options: If growth opportunities arise, consider modest external funding (e.g., business loans or investor capital) to strengthen the balance sheet.
• Regular Financial Review: Schedule regular internal reviews of financial KPIs to detect early warning signs of distress and enable timely management actions.
• Maintain Compliance: Continue timely filing of accounts and confirmation statements to avoid penalties and maintain corporate reputation.

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Medical Analogy Summary

C&S Leslie Consulting Limited is akin to a young patient showing stable vital signs but with a low blood pressure equivalent in liquidity. The heart (core operations) is functioning, but the patient is still building strength and reserves to withstand external shocks. With attentive care in cash management and financial discipline, the prognosis is good for healthy growth and long-term financial wellness.

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