KENTON CONSULTING LIMITED

Executive Summary

Kenton Consulting Limited demonstrates a stable but thin financial position characteristic of a young small company. While liquidity is currently positive, the company faces tight working capital and significant tax liabilities that require careful cash flow management. Strengthening equity and enhancing revenue transparency will be key to improving its financial resilience and long-term viability.

KENTON CONSULTING LIMITED - Analysis Report

Company Number: 14438065

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

Financial Health Assessment of Kenton Consulting Limited

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1. Financial Health Score: C (Fair)

Explanation:
The company shows foundational stability with positive net current assets and shareholders’ funds. However, the financial position is relatively thin, with a very modest equity base (£961) and current liabilities almost equal to current assets. The company is in an early stage (incorporated in late 2022), so it is understandable to have limited financial history, but the presence of a significant corporation tax creditor (£9,266) indicates a potential cash outflow pressure. The score reflects a company that is currently solvent but exhibits early "symptoms" of financial tightness and limited buffer against shocks.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	11,227	Cash-rich (£9,239) with some debtors (£1,988). Healthy liquidity base for day-to-day operations.
Current Liabilities	10,266	Almost equal to current assets, leaving a narrow working capital margin (£961).
Net Current Assets	961	Positive but small working capital; a "mild symptom" of restricted short-term financial flexibility.
Shareholders’ Funds (Equity)	961	Low equity base reflecting early stage; limited cushion for absorbing losses or investing.
Corporation Tax Creditors	9,266	Significant tax payable, which may strain cash flow if not planned carefully.
Number of Employees	1	Small company with minimal staffing costs, consistent with micro/small company profile.
Turnover	Not disclosed	Lack of turnover data limits assessment of operational profitability and cash inflows.

Additional Notes:

• The director has a loan/advance of £1,988 to the company, indicating some internal financing support.
• The company is exempt from audit, reflecting its small size and limited complexity.

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3. Diagnosis

Kenton Consulting Limited is in the early phase of its lifecycle, showing basic financial "vital signs" of a startup or small consulting firm. The presence of positive net current assets and cash holdings is reassuring, akin to a patient with stable vital signs but low reserves.

However, the company’s financial "symptoms" reveal a tight working capital situation, with current liabilities nearly matching current assets. The largest short-term liability is corporation tax, which can be a significant cash drain if not managed carefully. The low equity base means the company has limited financial resilience to absorb unexpected costs or downturns.

The absence of turnover figures in the available data means we cannot fully assess operational profitability or revenue growth trends. This is a common limitation in small companies’ filed accounts where minimal disclosures are provided.

Overall, the company is solvent and operational but exhibits early signs of financial tightness and potential liquidity risk if liabilities crystallize before sufficient cash inflows occur.

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4. Recommendations

• Enhance Cash Flow Management:
  Prioritize timely collection of receivables and closely monitor cash outflows, especially corporation tax payments, to avoid liquidity strain.

• Build Financial Reserves:
  Consider retaining earnings or injecting additional capital to strengthen shareholders’ funds, creating a buffer for unexpected expenses or growth investments.

• Increase Transparency on Revenue:
  Providing turnover and profit figures in future accounts will help all stakeholders better understand operational performance and financial health.

• Plan for Tax Liabilities:
  Establish a tax payment plan or set aside cash reserves specifically for upcoming tax obligations to prevent cash shortages.

• Explore Cost Control and Growth Strategies:
  As a consultancy, focus on winning new contracts and managing overheads efficiently to improve profitability and strengthen working capital.

• Regular Financial Health Checks:
  Conduct periodic financial reviews to detect early warning signs and adjust business plans accordingly.

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