ENGINEERING SALES CONSULTANCY SERVICES LTD.

Executive Summary

ENGINEERING SALES CONSULTANCY SERVICES LTD. demonstrates a strong financial position with healthy liquidity and growing equity, characteristic of a stable and efficiently managed micro consultancy. The company’s positive working capital and cash flow indicate good operational health, though maintaining this momentum and enhancing financial controls will be key as the business grows.

ENGINEERING SALES CONSULTANCY SERVICES LTD. - Analysis Report

Company Number: 13839448

Analysis Date: 2025-07-20 14:58 UTC

Financial Health Assessment Report for ENGINEERING SALES CONSULTANCY SERVICES LTD.

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1. Financial Health Score: B

Explanation:
The company demonstrates a sound financial position with positive net current assets and net assets, indicating a stable working capital base and shareholders’ equity growth over two years. The improvement in cash reserves and net assets reflects healthy operational progress for a young consultancy business. However, the small scale of operations and lack of audited accounts suggest there is room for stronger financial robustness and transparency to achieve the highest rating.

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2. Key Vital Signs

Vital Sign	Value (2024)	Interpretation
Current Assets	£22,478	Adequate liquid assets and receivables to meet short-term obligations.
Cash at Bank	£10,515	Healthy cash balance more than tripled from prior year, indicating improved liquidity.
Debtors	£11,963	Stable receivables, consistent with prior year, showing ongoing client engagements.
Current Liabilities	£2,350	Low short-term debts relative to assets, indicating low immediate financial pressure.
Net Current Assets	£20,128	Strong working capital position, a “healthy pulse” signaling capacity to cover current debts.
Net Assets (Equity)	£20,128	Positive net worth, reflecting retained profits and business growth since incorporation.
Profit & Loss Reserve	£20,127	Accumulated retained earnings, showing profitability and reinvestment capability.
Average Employees	0	Business currently operates without employees, relying on director/contractors.

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3. Diagnosis: Financial Condition and Underlying Business Health

ENGINEERING SALES CONSULTANCY SERVICES LTD. presents as a financially stable, micro-sized consulting business with a solid foundation in liquidity and equity. The company’s “vital signs” show it has successfully built working capital and cash reserves within two years, which is a positive symptom of sound financial management and operational efficiency.

The steady level of debtors indicates consistent client billing, while the low current liabilities suggest no significant short-term financial distress. The absence of employees signals a lean operation—likely director-led consultancy services—keeping overheads minimal, which supports positive cash flow.

The company benefits from a single controlling director who owns 75-100% of shares and voting rights, allowing agile decision-making but also concentrating risk. The lack of audit exemption and submission of unaudited accounts is typical for its small size but may limit external stakeholder confidence.

No worrying “symptoms of distress” such as overdue filings, increasing liabilities, or deteriorating net assets are present. However, the company should monitor its growth trajectory closely to ensure working capital and cash flow keep pace with any operational expansion.

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4. Recommendations: Steps to Improve Financial Wellness

• Enhance Cash Flow Management:
  Continue building cash reserves to maintain a healthy “cash flow heartbeat,” especially important if expanding or taking on employees.

• Consider Auditing or Independent Review:
  Even if audit exemption applies, an independent financial review can strengthen credibility with potential clients or lenders.

• Monitor Debtor Days:
  Implement stricter credit control to reduce debtor collection times and improve liquidity.

• Plan for Growth:
  If hiring employees or increasing operational scale, forecast working capital needs carefully to avoid cash flow “arrhythmias.”

• Strengthen Governance:
  Consider appointing additional directors or advisors to diversify oversight and reduce reliance on a single individual.

• Leverage Tax and Profit Retention Strategies:
  Use retained earnings efficiently to reinvest in technology, marketing, or business development to sustain growth.

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Executive Summary