LIVERPOOL STREET CAPITAL ADVISORS LTD

Executive Summary

Liverpool Street Capital Advisors Ltd demonstrates a strong liquidity position and solid net assets, reflecting good financial health typical for its micro-sized consultancy status. However, a decline in equity and a significant director’s loan highlight areas requiring careful management and repayment planning. With prudent financial controls and focus on profitability, the company’s outlook remains positive.

LIVERPOOL STREET CAPITAL ADVISORS LTD - Analysis Report

Company Number: 13124894

Analysis Date: 2025-07-20 14:10 UTC

Financial Health Assessment: Liverpool Street Capital Advisors Ltd (as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
The company shows a strong financial position with a healthy buffer of net current assets and net assets well above liabilities. However, there is a noticeable decline in net assets from the previous year and a large director’s loan which may represent a mild symptom requiring attention. Overall, the company appears financially stable but with some caution warranted.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£2,002	Very low fixed asset base typical for a micro-sized consultancy; no red flags here.
Current Assets	£607,023	Healthy cash and receivables indicating good short-term liquidity (cash flow "heartbeat").
Current Liabilities	£123,822	Manageable short-term debts, significantly lower than current assets (strong working capital).
Net Current Assets	£541,701	Very strong working capital indicating ability to cover immediate obligations comfortably.
Net Assets (Equity)	£541,738	Solid equity base relative to size, though reduced from previous year (£591,423) – a symptom to monitor.
Share Capital	£100	Nominal share capital, standard for micro-entities.
Director Loan	£392,998	Interest-free loan to director, to be repaid within 9 months; flagged as a potential risk factor.
Number of Employees	3	Stable small team size consistent with micro company classification.
Account Category	Micro	Minimal filing requirements; financial transparency is limited but sufficient for analysis.
Industry	Management Consultancy (SIC 70229)	Sector typically reliant on intellectual capital, with low fixed asset intensity.

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3. Diagnosis: Financial "Pulse" and Symptoms

The company's financial "pulse" is currently strong, with a robust liquidity position indicated by current assets far exceeding current liabilities—a symptom of healthy cash flow management. The net current assets and net assets signal a healthy balance sheet "heart," capable of sustaining operational needs without immediate risk of distress.

However, the 8.3% decline in net assets from £591,423 to £541,738 over the year could indicate some erosion in retained earnings or reserves. The accounts do not explicitly detail profit or loss, but this decrease is a mild symptom suggesting the company may be experiencing some strain on profitability or increased expenses.

A notable symptom requiring careful monitoring is the substantial director’s loan (£392,998). While this is interest-free and scheduled for repayment within 9 months, it represents a significant internal receivable. This could impact cash flow if not repaid promptly and may reflect reliance on directors’ personal funding rather than external financing or operating cash generation.

Overall, the company is deemed financially "fit" but with some watchfulness advised regarding the director’s loan and the slight decline in net equity.

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4. Recommendations: Treatment Plan for Financial Wellness

1. Monitor Director Loan Repayment:
   Ensure the £392,998 loan to the director is repaid on schedule within 9 months of year-end to maintain liquidity and avoid financial strain. Consider formalizing repayment terms and contingency plans.

2. Improve Profitability and Reserve Building:
   Investigate causes of the equity decline and implement strategies to enhance profitability, such as cost control, revenue growth, or pricing adjustments to strengthen retained earnings.

3. Maintain Strong Working Capital:
   Continue managing receivables and payables efficiently to preserve the strong net current assets position, ensuring the company’s "cash flow pulse" remains steady.

4. Plan for Growth and Asset Investment:
   Given the low fixed asset base, consider strategic investments in technology or resources that could improve service delivery and competitive advantage without overextending finances.

5. Regular Financial Reviews:
   Schedule periodic financial health diagnostics to detect early symptoms of distress, particularly given the micro-entity status limits detailed disclosures.

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