GB ASSET MANAGEMENT CONSULTING LIMITED

Executive Summary

GB ASSET MANAGEMENT CONSULTING LIMITED demonstrates overall financial stability with positive equity and working capital. However, the significant decline in cash reserves and net assets in the latest year signals emerging liquidity concerns. To maintain financial health, the company should focus on improving cash flow management and consider strategic actions to rebuild its financial reserves.

GB ASSET MANAGEMENT CONSULTING LIMITED - Analysis Report

Company Number: 14135324

Analysis Date: 2025-07-20 14:40 UTC

Financial Health Assessment of GB ASSET MANAGEMENT CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
The company shows generally sound financial health with positive net assets and a solid equity base relative to its size and age. However, there is a notable decline in net assets and cash reserves in the latest financial year compared to the prior year, signaling early symptoms of financial strain. The absence of fixed assets and no employees suggests a lean operational model, but the sharp decrease in liquidity requires attention to avoid future distress.

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2. Key Vital Signs

Metric	Latest Year (2025)	Prior Year (2024)	Interpretation
Fixed Assets	£0	£744	No long-term asset investment currently.
Current Assets	£14,532	£98,125	Significant drop in short-term assets, mainly cash.
Cash in Hand	£14,532	£97,748	Cash reserves have dropped drastically, a concern for liquidity.
Current Liabilities	£3,814	£60,699	Current liabilities have decreased sharply, reducing immediate obligations.
Net Current Assets	£10,718	£37,426	Working capital decreased but remains positive.
Net Assets (Equity)	£10,718	£38,170	Equity has reduced substantially, indicating possible losses or withdrawals.
Share Capital	£10	£10	Consistent share capital; no new equity raised.
Employees	0	0	No employees, indicating reliance on director or contractors.

Interpretation:

• Liquidity (Cash & Current Assets): The "healthy cash flow" seen in prior years has weakened significantly in 2025. While current liabilities decreased, the drastic fall in cash signals the company may be drawing down reserves or experiencing reduced income.
• Solvency (Net Assets/Equity): The company remains solvent with positive equity, but the decline from £38k to £10k may be a "symptom of distress" if trends continue.
• Operational Footprint: No fixed assets and no employees implies a minimal overhead structure, typical of consultancy firms, which is positive for flexibility but may limit growth capacity.

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3. Diagnosis

GB ASSET MANAGEMENT CONSULTING LIMITED, incorporated recently in 2022, operates in management consultancy with a lean structure. Financials indicate the company has maintained positive net assets since inception, which is a good sign of "financial vitality." However, the latest financial year shows a sharp reduction in cash and equity, which may be due to increased expenses, lower revenue, or director withdrawals (not uncommon in small private companies).

The positive net current assets and low current liabilities mean the company can meet short-term obligations comfortably, but the drop in liquidity calls for careful cash flow management. The company appears stable but with early warning signs that require monitoring.

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4. Recommendations

• Cash Flow Management: Implement a tighter control on cash outflows and accelerate receivables (even though current debtors are zero, future contracts should be monitored). Ensure that operating expenses align with cash inflows to avoid liquidity crunches.
• Revenue Diversification: Explore ways to increase turnover or client base to rebuild cash reserves and equity. A lean company must generate steady income to maintain financial health.
• Financial Planning: Prepare monthly cash flow forecasts and scenario plans to anticipate potential shortfalls early. Consider whether the drop in current liabilities is sustainable or reflects delayed payments.
• Asset Investment: Although fixed assets are not critical for consultancy, consider modest investments in technology or software that could enhance productivity and service offerings.
• Equity and Capital Strategy: Evaluate if additional capital injection is needed to shore up equity or support growth, especially if current trends continue.
• Director Involvement: Since the director holds full control and no employees are present, ensure the director's financial decisions are aligned with long-term company sustainability, avoiding excessive withdrawals.

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Medical Analogy Summary

The company’s financial "vital signs" show it is currently "stable but weakened," with a "healthy working capital" but a "shrinking cash reserve" acting as a "symptom" that demands attention. If left unchecked, this could lead to "financial fatigue" affecting operational capability. Proactive "financial wellness" measures like cash flow management and strategic planning are advised to restore robustness.

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