HALDANE CONSULTING LTD

Executive Summary

HALDANE CONSULTING LTD shows a stable financial position with positive net assets and liquidity, indicating good initial health for a newly formed micro entity. Profitability is modest, reflecting early-stage challenges, but no signs of financial distress are evident. Focused cost management and strategic growth planning will be key to improving financial wellness going forward.

HALDANE CONSULTING LTD - Analysis Report

Company Number: 14924251

Analysis Date: 2025-07-19 12:23 UTC

Financial Health Assessment of HALDANE CONSULTING LTD

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1. Financial Health Score: B

Explanation:
HALDANE CONSULTING LTD demonstrates a sound financial footing for a micro entity in its first full financial year. It shows a modest but positive profit, no current liabilities, and a healthy net asset position relative to its scale. The "B" grade reflects a stable and solvent business with good liquidity but recognizes the early stage of operations and limited scale which warrant cautious optimism.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Turnover	58,860	Modest revenue for a new micro entity, indicating initial business traction.
Profit for the Period	488	Small net profit indicating the company is covering costs and slightly profitable.
Cost of Materials	18,387	Significant cost relative to turnover, typical for consultancy needing resources or subcontractors.
Staff Costs	39,871	Major expense, consistent with employing 2 staff, reflects investment in human capital.
Current Assets	3,653	Includes cash and receivables, showing available operational liquidity.
Current Liabilities	0	No short-term debts; excellent indicator of liquidity and ability to meet immediate obligations.
Net Current Assets	3,653	Positive working capital indicates a "healthy cash flow" position—no liquidity symptoms of distress.
Fixed Assets	3,232	Investment in long-term assets, which supports operational capacity.
Net Assets / Shareholders’ Funds	6,885	Positive equity base, showing the company’s net worth is solid for its size.
Employee Count	2	Small, manageable team consistent with a micro enterprise profile.

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3. Diagnosis: Financial Condition

Overall Health: The company is in a stable financial condition, showing no symptoms of distress such as negative working capital, losses, or overdue liabilities. The positive net assets and zero current liabilities suggest good financial resilience, akin to a patient with stable vital signs and no immediate risk factors.

Revenue and Profitability: Turnover is modest but expected for a first-year micro entity. Profit is positive but very slim (£488), indicating tight margins and the need for careful cost management. Staff and material costs consume most of the revenue, which is common in consultancy businesses reliant on skilled personnel and possibly subcontracted inputs.

Liquidity and Solvency: The company exhibits a strong liquidity position with current assets exceeding current liabilities by £3,653 and no debts reported. This is a critical "healthy pulse" indicator reflecting the ability to pay bills on time and fund day-to-day operations without external financing.

Growth Potential and Risks: Being newly incorporated (June 2023), HALDANE CONSULTING LTD is in its infancy stage. The current financial profile shows a stable base but limited scale and profit buffer. The company should monitor profitability and cost control to avoid "symptoms" of financial stress as it seeks growth.

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4. Recommendations: Actions to Improve Financial Wellness

1. Enhance Profit Margins:

   • Review cost of materials and staff expenses to identify efficiencies.
   • Consider pricing strategies to improve revenue without losing competitiveness.

2. Strengthen Cash Flow Management:

   • Maintain positive net current assets by monitoring receivables collection and controlling payables.
   • Build a small cash reserve to buffer against seasonal fluctuations.

3. Plan for Growth:

   • Explore opportunities to increase turnover through new clients or expanded services in IT consultancy (SIC 62020).
   • Invest selectively in fixed assets or technology that can improve productivity without excessive upfront costs.

4. Financial Monitoring:

   • Regularly update management accounts to detect early warning signs (e.g., declining margins, increasing liabilities).
   • Seek professional advice for tax planning and potential grant funding for SMEs to improve profitability.

5. Governance and Compliance:

   • Ensure timely filing of accounts and confirmation statements to avoid penalties and support credibility.
   • Maintain clear records of director responsibilities and company decisions to support transparency.

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