KB SERVICES & CONSULTANCY LTD

Executive Summary

KB SERVICES & CONSULTANCY LTD maintains a stable yet modest financial profile typical of a micro consultancy, with steady turnover but a recent small loss and declining net assets. The lack of current assets signals tight liquidity, posing a risk for operational flexibility. Prompt action to improve cash flow, control costs, and monitor finances will be critical to maintaining the company's financial health and supporting sustainable growth.

KB SERVICES & CONSULTANCY LTD - Analysis Report

Company Number: 13260570

Analysis Date: 2025-07-20 17:38 UTC

Certainly, let’s conduct a thorough financial health assessment of KB SERVICES & CONSULTANCY LTD as per the data provided.

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1. Financial Health Score: C

Explanation:
The company shows stability in turnover but is experiencing a slight loss in the most recent year. Asset base is modest and shrinking, with no current assets reported, indicating tight liquidity. While there are no signs of immediate distress (no liabilities or overdue filings), the declining net assets and current-year loss indicate caution. The score "C" reflects a business that is stable but facing mild financial strain and needs attention to cash flow and profitability.

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2. Key Vital Signs

Vital Sign	Metric	Interpretation
Turnover	£43,142 (2024), stable	Revenue is steady but low; consistent with a micro entity in consultancy.
Profit/Loss	-£2,486 (2024), £31 (2023)	Shift from marginal profit to a small loss indicates emerging symptoms of financial stress.
Fixed Assets	£5,000 (2024), down from £7,500	Reduction in fixed assets may reflect disposals or depreciation; careful asset management needed.
Current Assets	£0	No liquid or short-term assets available; this is a warning sign for cash flow health.
Current Liabilities	£0	No short-term debts; positive sign indicating no immediate creditor pressure.
Net Current Assets	£0	Neutral working capital; no buffer for operational liquidity challenges.
Net Assets / Shareholders Funds	£5,000 (2024), down from £7,500	Declining equity base signals depletion of reserves, reducing financial resilience.
Employee Count	1 (average)	Very small operation; limited human resources may impact scale and capacity.
Filing Status	Up to date, no overdue filings	Administrative compliance is healthy; no regulatory red flags.

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3. Diagnosis: Financial Condition Assessment

KB SERVICES & CONSULTANCY LTD resembles a patient with stable but fragile health. The company maintains a steady turnover typical of a microenterprise in management consultancy, but the recent loss and shrinking net assets act as symptoms of mild distress. The absence of current assets (such as cash or receivables) raises concerns about liquidity—similar to a patient with no reserves in their bloodstream, leaving little margin for unexpected expenses or operational hiccups.

Fixed assets have decreased, possibly due to depreciation or asset disposals, which while not critical, suggests the company may not be investing in growth or renewing its operational base. The lack of liabilities is a positive sign, indicating no pressure from creditors, but also means the company is not leveraging financing to expand or smooth cash flow.

The business operates with a single employee (likely the director), which limits operational scalability but also keeps costs controlled. The shift from a marginal profit to a loss, though small, is a warning symptom that requires attention to prevent deterioration.

Overall, the company is stable but with early warning signs that, if unaddressed, could lead to financial strain. This resembles a patient with manageable chronic conditions but requiring lifestyle changes to avoid worsening health.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Liquidity ("Build Healthy Cash Flow")

  • Introduce measures to generate or retain cash, such as tightening credit terms if applicable, or negotiating better payment terms with clients and suppliers.
  • Consider setting aside a cash reserve to cover at least 3 months of operating expenses.

• Cost Control and Profitability Enhancement

  • Review the structure of "Other charges" (£29,225), which is a significant expense relative to turnover. Identify if any costs can be reduced or managed more efficiently.
  • Explore opportunities to increase turnover by expanding client base or service offerings to improve the revenue base.

• Asset Management

  • Assess the necessity and productivity of fixed assets. Consider whether any disposals are impacting operations or if reinvestment is needed to support growth.

• Financial Planning and Forecasting

  • Develop a simple cash flow forecast and budget to anticipate future financial needs and avoid surprises.
  • Monitor monthly financial performance closely to detect any negative trends early.

• Consider External Financing Options Carefully

  • If growth opportunities arise, the company may consider small loans or credit lines but should balance this against the need to maintain financial stability.

• Maintain Compliance and Governance

  • Continue timely filing of accounts and confirmation statements to avoid penalties and maintain credibility with stakeholders.

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