DAVID HIGGS CONSULTANCY LIMITED

Executive Summary

David Higgs Consultancy Limited is financially stable with improved cash reserves and equity, reflecting healthy business operations. The increase in short-term liabilities requires careful monitoring to prevent liquidity issues. Overall, the company is on a positive trajectory with opportunities to strengthen further through disciplined financial management.

DAVID HIGGS CONSULTANCY LIMITED - Analysis Report

Company Number: 14460890

Analysis Date: 2025-07-29 14:34 UTC

Financial Health Assessment of David Higgs Consultancy Limited (as at 31 March 2024)

---

1. Financial Health Score: B

Explanation:
David Higgs Consultancy Limited demonstrates solid financial fundamentals with improving liquidity and growing net assets over the recent year. The company maintains a healthy cash position and positive working capital, which are key indicators of operational stability. However, the noticeable increase in current liabilities relative to previous years warrants cautious monitoring to avoid cash flow strain. The absence of audit and limited disclosures typical for a small private company means some risk remains in assessing deeper financial risks.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Cash at Bank	£60,328	Strong cash reserves provide liquidity "vital signs" for daily operations and short-term obligations.
Current Assets	£64,612	Healthy buffer of assets that can be converted to cash within a year, good for operational flexibility.
Current Liabilities	£38,147	Increased significantly from prior year (£10,722), indicating rising short-term obligations ("symptoms of distress").
Net Current Assets (Working Capital)	£26,465	Positive working capital indicates the company can cover short-term debts comfortably, a "healthy cash flow" sign.
Shareholders’ Funds (Equity)	£26,465	Equity has increased substantially from £4,967 in 2023, reflecting retained earnings growth and financial strengthening.
Trade Debtors	£4,284	Stable receivables suggest consistent client payments, minimal risk of bad debts.
Employee Count	2	Small team size consistent with micro/small company category, manageable overheads.

---

3. Diagnosis

David Higgs Consultancy Limited is currently in a stable and improving financial condition, showing significant growth in equity and liquidity over the last financial year. The company operates in a niche specialist medical consultancy sector, which likely provides steady demand for its services.

• The healthy cash reserves (£60k) are a strong "heartbeat" indicating the company can meet immediate financial demands without stress.
• Positive net current assets reflect good working capital management, which prevents operational hiccups due to cash shortages.
• The sharp increase in current liabilities (from £10.7k to £38.1k) is a cautionary "symptom" that should be investigated further. This rise may be due to accrued expenses, delayed payments to suppliers, or tax/social security liabilities. If not managed, this could constrain cash flow.
• The company’s retained earnings have grown, pointing to a profitable operation or at least capital injection supporting the business.
• With only two employees and a simple capital structure, the company appears to be well-controlled but may need to carefully manage growth and expenses.

Overall, the company’s financial "vital signs" indicate a healthy and robust state, but the increasing short-term liabilities are a potential "early symptom" of liquidity stress if unchecked.

---

4. Recommendations

To maintain and improve financial wellness, the following actions are advised:

1. Monitor and Manage Current Liabilities:
   Investigate the reasons behind the increase in short-term creditors and taxation liabilities. Ensure timely payment to avoid penalties or supplier relationship issues. Consider negotiating payment terms if necessary.

2. Maintain Strong Cash Flow:
   Continue to prioritize cash flow management. Keep a close eye on debtor collections and avoid unnecessary cash outflows.

3. Plan for Growth Carefully:
   As retained earnings and equity build, consider strategic reinvestment in resources or marketing to expand client base while safeguarding liquidity.

4. Regular Financial Reviews:
   Implement monthly or quarterly financial reviews to catch any emerging "symptoms" of distress early. Use cash flow forecasts and budgets as diagnostic tools.

5. Prepare for Future Audit or Reporting Requirements:
   Although currently exempt from audit, keep accounting records in good order to facilitate smooth scaling or external funding if needed.

6. Risk Management:
   As a specialist medical practice, ensure compliance with regulatory and professional standards to avoid operational risks that could impact financial health.

---

Executive Summary

David Higgs Consultancy Limited shows strong financial health with substantial growth in cash reserves and shareholders’ funds, indicating solid operational performance. However, the notable rise in current liabilities signals a need for cautious management of short-term obligations to maintain liquidity and avoid potential cash flow stress. With prudent financial oversight, the company is well-positioned for sustainable growth.