KEARNEY CONSULTING SERVICES LTD

Executive Summary

KEARNEY CONSULTING SERVICES LTD exhibits a stable and healthy financial position with sufficient liquidity and positive net assets, typical of a well-managed micro-entity. While the company shows no signs of financial distress, ongoing monitoring of asset management and working capital will be crucial to sustaining its financial wellness and supporting potential growth.

KEARNEY CONSULTING SERVICES LTD - Analysis Report

Company Number: 14121321

Analysis Date: 2025-07-29 14:15 UTC

Financial Health Assessment: KEARNEY CONSULTING SERVICES LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a stable financial position with positive net assets and working capital, indicating good liquidity and solvency. However, the micro-entity scale and limited asset base suggest a modest financial footprint. The slight reduction in fixed assets and relatively narrow margin between current assets and liabilities signal areas for cautious monitoring. Overall, the financial "vital signs" reveal a healthy but small operation with room for strengthening.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	3,000	Represents long-term investments; slight decrease from 2023.
Current Assets	17,205	Includes cash and receivables; indicates liquid resources are adequate.
Current Liabilities	11,330	Short-term debts; manageable but requires monitoring.
Net Current Assets	5,875	Positive working capital; "healthy cash flow" cushion.
Total Net Assets	8,875	Equity value indicating company’s net worth is positive.
Shareholders Funds	8,875	Reflects owner’s invested capital plus retained earnings.
Number of Employees	2	Micro-entity with minimal staffing costs and overhead.

Interpretation:

• Working Capital (Net Current Assets): The positive balance (£5,875) suggests the company can meet short-term obligations without distress. This is akin to a patient’s stable heart rate indicating good circulation.
• Net Assets: The equity base is stable and slightly increased from previous years, showing retained earnings or capital injections, a sign of ongoing viability.
• Fixed Assets: Decrease from £4,000 to £3,000 may indicate asset disposals or depreciation, which is not alarming but worth understanding for long-term asset management.
• Employee Base: Small size keeps overhead low but may limit operational capacity.

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3. Diagnosis

KEARNEY CONSULTING SERVICES LTD presents as a financially stable micro-entity with a solid foundation of net assets and positive working capital. The company’s liquidity position is "healthy," implying it can cover short-term liabilities comfortably, which is critical for day-to-day operational health. The steady shareholders’ funds signify retained profits or consistent funding, providing a buffer against unforeseen financial shocks.

There are no symptoms of financial distress such as negative net assets, overdue filings, or excessive liabilities. The company’s micro-entity status means it operates on a small scale, which often translates to simpler financial structures but also potential vulnerability to market fluctuations or cash flow interruptions.

The slight decrease in fixed assets is not immediately concerning but suggests the need to monitor capital expenditure and asset replacement to avoid future operational constraints.

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4. Recommendations

• Maintain Positive Working Capital: Continue prudent cash flow management to sustain liquidity. Consider establishing a cash reserve as a buffer against seasonal fluctuations or unexpected expenses.
• Asset Management: Review fixed asset usage and plan for timely upgrades or replacements to avoid operational disruptions. This is like maintaining vital organs to ensure overall health.
• Monitor Liabilities: Keep current liabilities under control, avoid over-reliance on short-term credit to prevent "symptoms" of financial strain.
• Growth Strategy: Explore modest expansion opportunities to increase turnover and profitability, which can improve financial resilience.
• Regular Financial Reviews: Implement periodic financial health check-ups beyond statutory filing requirements to catch early signs of distress.
• Stakeholder Communication: Maintain transparent reporting and engagement with the principal shareholder/director to ensure aligned strategic decisions.

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