JULIA PRICE CONSULTING LIMITED

Executive Summary

Julia Price Consulting Limited presents a financially healthy start-up profile with strong liquidity and positive net assets, indicating a sound foundation for growth. Key risks include managing directors’ loans and corporation tax liabilities to maintain cash flow health. With prudent financial management and ongoing monitoring, the company is well-positioned for sustainable development.

JULIA PRICE CONSULTING LIMITED - Analysis Report

Company Number: 14850108

Analysis Date: 2025-07-29 18:04 UTC

Financial Health Assessment of JULIA PRICE CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
Julia Price Consulting Limited exhibits a solid start-up financial position with positive net current assets and net assets, reflecting a "healthy pulse" in its balance sheet. The company is in its first year of operation, which naturally limits the depth of financial history. The presence of adequate liquid assets (cash) relative to short-term liabilities indicates good short-term financial health. However, the company's reliance on directors’ loans and corporation tax liabilities suggests caution is warranted as these "symptoms" could strain cash flow if not managed carefully. Overall, the company is financially sound but still in early stages, warranting a cautious optimistic rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	65,659	Strong liquid assets primarily in cash, indicating good liquidity "oxygen" for operations.
Cash at Bank and in Hand	64,342	Majority of current assets are cash, indicating immediate availability to meet obligations.
Debtors	1,317	Minimal outstanding receivables, low risk of delayed cash inflow.
Current Liabilities	34,986	Includes corporation tax and directors’ loan; manageable but requires monitoring.
Net Current Assets (Working Capital)	30,673	Positive working capital indicates ability to cover short-term debts, a sign of financial "fitness".
Net Assets / Shareholders’ Funds	30,673	Reflects equity capital and retained earnings, showing a stable financial "backbone".
Called up Share Capital	100	Modest equity injection; typical for a new small company.
Directors’ Loan Account	14,383	Reliance on loans from directors, a common "supportive supplement" in early stages but needs management.
Corporation Tax Liability	18,628	Tax due but unpaid; should be prioritized to avoid penalties and maintain "healthy compliance".

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3. Diagnosis

• Liquidity and Solvency: The company shows a healthy liquidity position with cash significantly exceeding current liabilities, meaning it can comfortably meet its short-term obligations — a crucial sign of financial well-being.
• Capital Structure: Equity capital is modest but positive, and retained earnings already show a healthy profit and loss reserve, demonstrating early profitability or capital retention.
• Financial Risks: The presence of a directors' loan indicates external capital support but also a liability that must be managed to avoid cash flow stress. Corporation tax is a current liability that requires attention to prevent financial or regulatory "infections."
• Operational Status: With two directors employed and managing the business, it appears lean and efficient. The small scale and exemption from audit reflect a micro or small company size, consistent with early-stage management consultancy activities.
• Growth Potential: The company’s positive net assets and working capital provide a strong platform for organic growth, but close monitoring of tax and loan repayments is essential.

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4. Recommendations

• Cash Flow Management: Maintain a "healthy cash flow" by ensuring timely payment of corporation tax and directors' loan to avoid penalties and reduce financial strain.
• Debt Monitoring: Develop a clear plan for repayment or conversion of directors’ loans into equity to strengthen the capital base and reduce liabilities.
• Revenue Tracking: Since revenue recognition is based on service delivery progress, ensure rigorous tracking of contracts and receivables to maintain steady income streams.
• Cost Control: Keep overheads minimal given the company’s scale and continue monitoring creditor balances to avoid liquidity "stress symptoms."
• Financial Planning: Prepare budgets and cash flow forecasts regularly to foresee and mitigate potential liquidity issues.
• Regulatory Compliance: Continue timely filing of accounts and confirmation statements to maintain regulatory "health" and avoid penalties or reputational damage.

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