IOFAN SAMUEL CONSULTING LTD

Executive Summary

Iofan Samuel Consulting Ltd shows signs of financial fragility, with minimal equity and working capital just sufficient to meet immediate liabilities. The company’s financial health is weak, indicating vulnerability to operational shocks and limited capacity for growth without capital strengthening. Immediate focus on improving capitalization and cash flow management is essential to build a sustainable financial footing.

IOFAN SAMUEL CONSULTING LTD - Analysis Report

Company Number: 14194665

Analysis Date: 2025-07-29 16:04 UTC

Financial Health Assessment for Iofan Samuel Consulting Ltd (as of 31 March 2024)

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1. Financial Health Score: D

Explanation:
The company’s financial metrics indicate an extremely fragile financial position, with net assets and shareholders’ funds of just £1, reflecting a minimal equity base. This score reflects a critical need for strengthening financial foundations to ensure sustainability.

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2. Key Vital Signs:

Metric	Value (£)	Interpretation
Current Assets	27,395	Shows liquid or short-term resources available.
Current Liabilities	27,394	Obligations due within one year, almost equal to current assets.
Net Current Assets	1	Working capital barely positive — "on the edge" of liquidity.
Net Assets / Shareholders’ Funds	1	Equity is almost non-existent—company is essentially "living on a shoestring".
Number of Employees	2	Small team size consistent with micro-entity status.
Account Category	Micro	Simplified reporting, small scale operations.
Industry	Management consultancy activities other than financial management	Service-oriented, likely low capital expenditure.

Interpretation of Vital Signs:

• The near parity of current assets and liabilities ("symptom of precarious liquidity") suggests the company has just enough short-term resources to meet immediate obligations but lacks any meaningful buffer against unexpected expenses or downturns.
• The net assets and shareholders’ funds at £1 indicate extremely thin capitalization. Essentially, the company has no retained earnings or capital reserves, a "symptom of financial frailty."
• The consistency of these figures over three years suggests the company has not yet grown its capital base or accumulated profits, which may be due to early stage, minimal trading, or operational challenges.

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3. Diagnosis:

Overall Financial Condition:
Iofan Samuel Consulting Ltd is at a very early stage of business development or is operating with minimal financial depth. The company’s balance sheet shows a "critical symptom" of barely positive net current assets and negligible equity. This means the company is highly vulnerable to any financial stress such as delayed payments from clients, unexpected costs, or increased liabilities.

The absence of a profit and loss account filing (common for micro-entities) limits insight into profitability or cash flow trends, but the static net asset position over three years indicates the business has not yet generated or retained profits.

The firm's "financial pulse" is very weak, and it may be operating close to break-even or even at a loss without the cushion to absorb shocks. The low asset base and thin equity also restrict borrowing capacity or investment potential.

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4. Recommendations:

Immediate Actions:

• Improve Capitalization: Inject additional equity or retain earnings to build a stronger financial buffer. This strengthens solvency and provides a cushion for operational risks.
• Enhance Cash Flow Management: Monitor cash inflows and outflows carefully. Negotiate better payment terms with clients and suppliers to improve working capital.
• Prepare and Monitor Profit & Loss: Even if not required to file, maintain internal P&L statements to understand profitability drivers and cost control.
• Explore Growth Opportunities: Consider marketing and business development efforts to increase revenue, thereby improving financial resilience.
• Maintain Compliance: Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain creditor and investor confidence.

Longer-Term Considerations:

• Financial Forecasting: Build scenarios for revenue growth and cost management to plan for sustainable profitability.
• Risk Management: Identify potential financial risks and develop contingency plans, including access to credit facilities.
• Seek Expert Advice: Consider consulting a financial advisor or accountant to support financial strategy and operational improvements.

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