LIBRA PARTNERS CONSULTING LIMITED

Executive Summary

LIBRA PARTNERS CONSULTING LIMITED exhibits strong financial health characterized by healthy liquidity, growing net assets, and prudent management of liabilities. The company’s financial "vital signs" indicate stability with a solid equity base and no immediate distress symptoms. Continuing to optimize assets and cautiously pursue growth will support sustained financial wellness.

LIBRA PARTNERS CONSULTING LIMITED - Analysis Report

Company Number: 14070920

Analysis Date: 2025-07-29 16:15 UTC

Financial Health Assessment: LIBRA PARTNERS CONSULTING LIMITED

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1. Financial Health Score: B+

Explanation:
The company demonstrates a solid balance sheet with healthy working capital and positive net assets growth. The financials show stable management of current liabilities and increasing shareholder equity, indicative of good financial "vital signs." However, as a micro-entity with a small asset base and limited size, there is room for improvement in asset utilization and diversification to strengthen long-term resilience.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£16,000	Modest investment in long-term assets; slight decrease from 2023
Current Assets	£263,026	Healthy level of liquid and short-term assets, up 15% from 2023
Current Liabilities	£78,631	Reduced by 25% from previous year, indicating improved debt management
Net Current Assets	£184,395	Strong positive working capital, indicating liquidity strength
Total Net Assets (Equity)	£200,395	Increased significantly (41%) reflecting accumulated profits and retained earnings
Average Number of Employees	2	Small team consistent with micro-entity status

Interpretation:

• Liquidity ("Healthy cash flow"): The company has a comfortable buffer of current assets over current liabilities, signaling no immediate liquidity distress.
• Solvency ("Strong backbone"): Net assets are positive and growing, showing the company has more assets than liabilities, a fundamental marker of financial health.
• Operational Scale: With only two employees, the company operates at a micro scale, which limits operational risk but also growth bandwidth.

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3. Diagnosis

The financial "symptoms" suggest a company in a stable and financially sound condition. The increase in net current assets and net assets year-on-year reflects effective management of short-term obligations and retention of earnings, which are positive signs of business health. The slight reduction in fixed assets could imply cautious capital expenditure or asset disposal, which is not necessarily negative but should be monitored for impact on operational capacity.

The company's status as a micro-entity with modest asset levels and a small workforce means it has low complexity but also exposes it to potential risks such as limited diversification and dependence on key personnel. The balance sheet shows no signs of financial distress such as negative working capital or excessive liabilities.

In medical terms, the company’s financial "pulse" is strong, "blood pressure" (liquidity) is well controlled, and "immune system" (equity) is robust, indicating a generally healthy financial condition.

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4. Recommendations

• Maintain Strong Liquidity: Continue prudent management of current assets and liabilities to preserve liquidity. Avoid overextension of credit lines or accumulation of short-term debts.
• Asset Optimization: Review fixed assets to ensure they are productive and aligned with business strategy. Consider reinvestment if necessary to support growth or efficiency.
• Growth Strategy: Explore opportunities to scale operations carefully, possibly by increasing workforce or expanding service offerings, to leverage the strong financial base for higher returns.
• Risk Management: Given the small size, implement contingency planning for key person risk and market fluctuations. Diversify client base and services to reduce dependency.
• Compliance and Reporting: Keep up-to-date with filing deadlines and statutory obligations to avoid penalties and maintain good standing.

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