ELITE UNIVERSAL CONSULTING LIMITED

Executive Summary

Elite Universal Consulting Limited shows signs of financial stress with negative net assets and working capital deficits, indicating liquidity and capitalization challenges. However, stable cash levels and slight improvement over time suggest potential for recovery if proactive cash flow management and capital strengthening measures are taken promptly.

ELITE UNIVERSAL CONSULTING LIMITED - Analysis Report

Company Number: 13556329

Analysis Date: 2025-07-20 15:27 UTC

Financial Health Assessment: ELITE UNIVERSAL CONSULTING LIMITED

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial strain, indicated by persistent negative net assets and net current liabilities over recent years. While not in immediate crisis, these "symptoms" suggest the company is under financial distress, requiring corrective measures to restore health.

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2. Key Vital Signs

Metric	2024 (£)	Interpretation
Cash at bank	8,898	Limited cash buffer, a modest "pulse" but tight liquidity.
Current Liabilities	9,955	Slightly higher than cash and current assets, indicating short-term obligations exceed liquid assets.
Net Current Assets	-1,057	Negative working capital—a "symptom" of potential liquidity stress.
Net Assets / Shareholders' Funds	-1,057	Negative equity indicating accumulated losses or undercapitalization.
Employee Count	1	Very small scale, which can reduce overhead but also limits operational capacity.

Additional Observations:

• The company has consistently reported negative net assets from inception, although the deficit has improved from -4,127 in 2021 to -1,057 in 2024, showing some progress.
• Cash levels have remained relatively stable, but the company's liabilities slightly exceed current assets, indicating tight cash flow management is essential.
• No fixed assets are reported, which might reduce depreciation costs but also indicates limited tangible collateral.

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3. Diagnosis

The company is currently in a precarious financial state, akin to a patient with a chronic but manageable condition. Negative net assets signal that liabilities exceed assets, a classic "symptom" of undercapitalization or accumulated losses. The negative working capital suggests the company may struggle to meet short-term obligations without relying on additional financing or improved cash inflows.

However, the stability in cash and slight improvement in net asset position over the last few years is a positive sign—showing the company has not deteriorated further and may be stabilizing.

Given the business is a management consultancy (SIC 70229), which typically has low fixed asset requirements and relies heavily on human capital, the financial strain likely reflects early-stage investment or slow revenue growth. The sole director and 75-100% shareholder, Nisreen Ali, controls the company, which may facilitate rapid decision-making to address issues.

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4. Recommendations

To restore financial health and alleviate symptoms of distress, the company should consider the following actions:

1. Improve Cash Flow Management:

   • Focus on accelerating receivables collection and negotiating extended payment terms with creditors.
   • Maintain a cash buffer to cover at least 3 months of operating expenses.

2. Capital Injection or Debt Restructuring:

   • Consider additional equity investment from the shareholder or external investors to strengthen the balance sheet.
   • Alternatively, restructure short-term liabilities to longer-term debt where possible to ease liquidity pressures.

3. Cost Control and Revenue Enhancement:

   • Review operational costs and reduce any unnecessary expenses.
   • Explore growth opportunities in consultancy contracts to increase turnover and improve profitability.

4. Regular Financial Monitoring:

   • Implement monthly financial reviews to track cash flow and working capital closely.
   • Use financial forecasts to anticipate and prevent liquidity crunches.

5. Professional Advice:

   • Engage with financial advisors or accountants to explore tax planning, grant opportunities, or restructuring options.
   • Ensure compliance with filing deadlines to avoid penalties and maintain corporate reputation.

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