KINGSEAT CONSULTANCY SERVICES LIMITED

Executive Summary

Kingseat Consultancy Services Limited shows a healthy financial condition with growing shareholder equity and asset base, indicating solid business fundamentals. However, a significant decrease in current assets signals tightening liquidity, which requires careful cash flow management to maintain operational stability. Overall, the company is financially sound but should prudently monitor working capital and leverage recent investments for sustainable growth.

KINGSEAT CONSULTANCY SERVICES LIMITED - Analysis Report

Company Number: SC735608

Analysis Date: 2025-07-20 15:07 UTC

Financial Health Assessment: KINGSEAT CONSULTANCY SERVICES LIMITED

---

1. Financial Health Score: B

Explanation:
Kingseat Consultancy Services Limited's financial condition shows solid fundamentals with positive net assets and shareholder equity growth. The company has a strong asset base relative to its liabilities, indicating a healthy balance sheet "heartbeat." However, the significant drop in current assets and net current assets compared to the prior year suggests some liquidity tightening — a symptom warranting monitoring. Overall, the financial "pulse" is good but with caution signs that call for prudent cash flow management.

---

2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	59,174	733	Sharp increase indicates investment in long-term resources, a positive sign of business growth or capitalisation.
Current Assets	22,797	63,664	Decreased notably, indicating reduced liquid resources or receivables — possible cash flow tightening.
Current Liabilities	7,936	21,106	Decreased, reducing short-term financial obligations, which is positive.
Net Current Assets	14,861	42,558	Decline shows reduced working capital, a symptom of less buffer for day-to-day operations.
Total Assets less CL	74,035	43,291	Increased total net assets reflect improved overall financial strength.
Shareholders’ Funds	74,035	43,291	Equity rise signals retained earnings or investment, reinforcing solvency.
Employees (Average)	1	1	Stable workforce size, typical for a micro entity.

---

3. Diagnosis

Kingseat Consultancy Services Limited presents as a financially stable micro-entity with a healthy balance sheet and growing shareholder equity, akin to a patient with good vital signs and improving strength. The significant jump in fixed assets suggests investment in business capabilities, potentially positioning the company for future growth.

However, the notable contraction in current assets and net current assets — the company’s "working capital reserve" — is a symptom of tightened liquidity. While current liabilities also fell, the reduced cash and short-term assets could limit the company’s ability to cover immediate expenses or respond to unforeseen demands. This liquidity dynamic requires active monitoring to ensure the company maintains a "healthy cash flow" and does not develop symptoms of financial distress.

The exemption from audit under micro-entity provisions is typical and not a concern but means less external scrutiny. The stable employee count signals operational consistency.

---

4. Recommendations

• Enhance Cash Flow Management: Focus on accelerating receivables collection and managing payables to improve liquidity. Consider forecasting cash flows to anticipate shortfalls.

• Monitor Working Capital Closely: Maintain a buffer in current assets to prevent liquidity crunches that could strain day-to-day operations.

• Capitalize on Fixed Asset Investment: Ensure that the increase in fixed assets translates effectively into revenue growth or operational efficiencies.

• Maintain Financial Discipline: Continue prudent cost control and avoid overextending credit or commitments given the tightening current asset base.

• Prepare for Growth Carefully: With increased capital investment, plan strategically to convert assets into income and monitor key performance indicators regularly.

---