HOOD CONSULTING LIMITED

Executive Summary

HOOD CONSULTING LIMITED demonstrates a solid financial foundation characterized by positive working capital and growing equity, typical for a stable micro-entity consultancy. While the company shows signs of prudent management and liquidity health, it should focus on building reserves and planning controlled growth to sustain long-term financial wellness.

HOOD CONSULTING LIMITED - Analysis Report

Company Number: 14502612

Analysis Date: 2025-07-29 12:51 UTC

Financial Health Assessment for HOOD CONSULTING LIMITED (as at 30 November 2024)

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1. Financial Health Score: B

Explanation:
HOOD CONSULTING LIMITED exhibits a sound financial condition typical for a micro-entity in its early years. The company maintains positive net current assets and growing shareholders’ funds, indicating resilience and prudent management of resources. However, the relatively small fixed asset base and modest capitalisation suggest limited operational scale and potential vulnerability to unexpected shocks. This score reflects a healthy but cautious outlook appropriate for a young consulting firm.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£812	Minimal investment in long-term assets, consistent with a consultancy relying on intellectual capital rather than physical assets.
Current Assets	£53,400	Healthy level of liquid assets and receivables to support daily operations.
Current Liabilities	£33,782	Short-term obligations are moderate; timely payment management is critical to avoid liquidity stress.
Net Current Assets (Working Capital)	£19,618	Positive working capital indicates the company can cover short-term debts with current assets—sign of "healthy cash flow."
Shareholders Funds (Equity)	£20,430	Growing equity base reflects retained earnings and capital injections, representing financial "vitality."
Profitability Indicators	Not explicitly provided	No profit/loss data available; presumed stable given growing equity.
Employee Count	1	Small team size typical for micro-entities and consulting firms, implying lean operations.

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3. Diagnosis: What the Financial Data Reveals

HOOD CONSULTING LIMITED shows the "symptoms" of a financially stable micro-entity operating in management consultancy. The balance sheet reveals growth in net current assets and shareholders’ funds over the past two years, signaling successful retention of profits or capital support. The positive working capital confirms the company is not experiencing liquidity distress—a key indicator akin to a steady heartbeat in a financial check-up.

The lack of significant fixed assets aligns with the company's consultancy nature, where intellectual property and human capital are primary assets instead of equipment or property. The single employee count and micro-entity classification reflect a lean business model, reducing overheads but potentially limiting scalability.

There are no overdue filings or indications of financial distress such as negative equity or excessive liabilities. The company’s governance appears stable with a single director and clear ownership structure split between two persons with significant control.

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4. Recommendations: Steps to Improve Financial Wellness

• Maintain Strong Cash Flow Management: Continue monitoring receivables and payables closely to sustain positive working capital and avoid liquidity crunches.

• Build Financial Reserves: Gradually increase retained earnings to create a buffer against unforeseen expenses, much like building immunity against future financial "illness."

• Consider Incremental Investment: Evaluate opportunities for investing in technology or training to enhance service delivery, which may require modest fixed asset growth.

• Plan for Growth: With a stable base, explore hiring or subcontracting to expand capacity while controlling overhead, ensuring the business remains agile and financially healthy.

• Regular Financial Reviews: Conduct periodic financial health "check-ups" to detect early warning signs like increasing liabilities or shrinking working capital.

• Compliance Vigilance: Ensure timely filing of accounts and confirmation statements to avoid penalties, maintaining "administrative health."

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