FRAMEWORK PMO CONSULTING LTD

Executive Summary

FRAMEWORK PMO CONSULTING LTD shows a stable financial footing for a newly incorporated micro entity, with positive net assets and a modest working capital surplus indicating healthy short-term liquidity. While there are no immediate signs of financial distress, the narrow liquidity buffer calls for prudent cash flow management and ongoing financial monitoring to ensure sustainable growth and resilience. Building cash reserves and maintaining tight control over receivables will be key to strengthening financial health as the company scales.

FRAMEWORK PMO CONSULTING LTD - Analysis Report

Company Number: 14555392

Analysis Date: 2025-07-20 11:36 UTC

Financial Health Assessment for FRAMEWORK PMO CONSULTING LTD

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1. Financial Health Score: B

Explanation:
FRAMEWORK PMO CONSULTING LTD exhibits a stable but nascent financial position typical for a micro entity in its first full year of trading. The company maintains positive net assets and a modest positive working capital position, indicating basic financial health. However, the low scale of assets and net current assets suggests limited operational buffer, warranting cautious optimism.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,966	Minimal long-term investment, typical for a startup consulting firm.
Current Assets	21,578	Includes cash, receivables; healthy liquidity source.
Current Liabilities	20,634	Short-term obligations nearly equal to current assets.
Net Current Assets (Working Capital)	944	Positive but narrow margin; indicates limited short-term liquidity cushion.
Total Assets Less Current Liabilities	2,910	Indicates positive asset coverage over short-term debts.
Net Assets (Shareholders Funds)	2,910	Positive equity base, showing initial retained value.
Number of Employees	1	Very small scale operation; low overhead risk.
Account Category	Micro	Simplified reporting, limited scale.

Interpretation:

• The company’s "vital signs" show a stable financial footing with positive net assets and a working capital surplus, albeit small.
• The nearly balanced current assets and liabilities suggest a "healthy cash flow" scenario if receivables are collectible and liabilities are manageable.
• Fixed assets are minimal, consistent with a consultancy business that relies more on intellectual capital than physical assets.
• The micro entity status also reflects a lean operational model with low complexity and risk.

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3. Diagnosis: Overall Financial Condition

FRAMEWORK PMO CONSULTING LTD is in the early stages of its business life cycle, presenting "symptoms of a stable start." The company’s balance sheet shows no signs of financial distress such as negative net assets or excessive liabilities. The positive net current assets reflect a "healthy short-term liquidity position," meaning it is currently able to meet its immediate financial obligations.

However, the narrow working capital margin points to a "fragile liquidity buffer," which could become a concern if there are delays in receivables or unexpected expenses. The sole director and controlling shareholder, Mr Anil Arora, suggests centralized control with direct accountability, a factor that can be beneficial for quick decision-making but also concentrates risk.

Given the limited size and recent incorporation (December 2022), the company’s financial health is consistent with a startup phase, with no red flags but requiring careful cash flow management.

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4. Recommendations for Financial Wellness Improvement

• Strengthen Working Capital:
  Aim to increase the net current assets buffer by accelerating receivables collection and managing payables efficiently to protect against liquidity shocks.

• Build Cash Reserves:
  Maintaining a cash reserve equivalent to at least 1-2 months of operating expenses will provide a cushion for unforeseen costs.

• Monitor Credit Risk:
  Ensure that clients are creditworthy to avoid bad debts, which could quickly erode the slim working capital margin.

• Plan for Growth:
  Consider gradual investment in fixed assets or human capital to scale operations in line with increasing revenues, ensuring this does not outpace cash flow.

• Regular Financial Review:
  Establish monthly financial reviews focusing on cash flow forecasts, debtor aging, and creditor terms to detect early signs of financial stress.

• Compliance and Timely Filing:
  Maintain compliance with filing deadlines to avoid penalties and demonstrate good governance, which supports stakeholder confidence.

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