LLOYD LEON CONSULTANCY LIMITED

Executive Summary

Lloyd Leon Consultancy Limited exhibits stable and improving financial health with positive working capital and growing equity. While asset reductions warrant monitoring, the company displays strong liquidity and no distress signals. Focused reinvestment and cash flow management will be key to sustaining and enhancing financial wellness in future years.

LLOYD LEON CONSULTANCY LIMITED - Analysis Report

Company Number: 12760113

Analysis Date: 2025-07-29 20:20 UTC

Financial Health Assessment for LLOYD LEON CONSULTANCY LIMITED

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1. Financial Health Score: B

Explanation:
Lloyd Leon Consultancy Limited demonstrates a generally stable financial position with improving liquidity and positive net assets. The company has overcome previous working capital challenges and now reports healthy net current assets, indicating improved short-term financial health. However, some caution is warranted due to a decline in fixed assets and relatively modest shareholder equity given the company's age and size. Overall, this scores a solid "B" grade reflecting a healthy but still developing financial wellness.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	52,070	Tangible or intangible long-term assets. Slight decrease from prior years may suggest asset disposals or depreciation.
Current Assets	57,521	Cash, receivables, inventory. Significant increase from prior year, a positive sign for liquidity.
Current Liabilities	47,966	Short-term obligations due within one year. Slight increase but manageable relative to current assets.
Net Current Assets	9,555	Positive value indicates working capital surplus, a vital sign of operational liquidity and ability to meet short-term debts.
Total Assets less Curr. Liabilities	61,625	Reflects net asset value after covering current liabilities; an increasing trend signals strengthening financial base.
Shareholders' Funds	61,625	Equity held by owners. Growth from £50,037 in 2023 to £61,625 in 2024 shows retained earnings or capital injections.
Share Capital	2.00	Minimal nominal share capital, typical for small private companies.

Additional notes:

• The company is classified as a Micro entity, limiting disclosure requirements but also indicating a small scale.
• Average employees remain at 2, consistent with a small consultancy.
• No overdue filings or signs of regulatory distress.
• Directors appear stable and without disqualification records.

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3. Diagnosis: Financial Health Overview

Lloyd Leon Consultancy Limited presents the vital signs of a small but financially stable business. The transition from a negative to positive net current assets marks a crucial improvement in liquidity—the "healthy pulse" of daily operations. This means the company is better able to cover its short-term debts and operational costs, reducing risk of cash crunches.

The decline in fixed assets from £73,219 to £52,070 may indicate asset sales or write-downs. While this could reduce operational capacity or investment, it may also reflect a strategic downsizing or efficiency measures. The increase in current assets, particularly cash or receivables, suggests stronger cash flow management.

Shareholders' equity growth confirms the company is either retaining profits or receiving additional funding, reinforcing the business's "immune system" to financial shocks.

However, the relatively low share capital (£2) and modest overall asset base reflect the micro-entity scale, meaning the company may have limited financial buffers against unexpected downturns or growth demands.

Overall, the company shows no symptoms of financial distress such as overdue filings, negative equity, or excessive liabilities, indicating good underlying health and prudent management.

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4. Recommendations: Path to Enhanced Financial Wellness

• Strengthen Fixed Assets: Consider reinvesting in key assets or technology to support service delivery scalability and long-term competitiveness. Asset investment is like "building muscle" for the business’s operational strength.

• Maintain Cash Flow Vigilance: Continue monitoring working capital closely to sustain positive net current assets. Healthy cash flow is the lifeblood of any small consultancy.

• Build Shareholder Equity: Explore options to increase capital reserves through retained earnings or external investment to improve financial resilience.

• Review Cost Structure: Evaluate any rising current liabilities to ensure they do not outpace asset growth, preventing potential liquidity "arrhythmias."

• Plan for Growth: As a micro-entity, planning for scaling up operations may require formal financial forecasting and potentially enhanced reporting to attract investors or partners.

• Regular Compliance: Maintain timely filings and regulatory compliance to avoid penalties and reputational risks.

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