Company Number: 14501508

Analysis Date: 2025-07-29 12:33 UTC

Financial Health Assessment for Maaz Consulting Limited

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1. Financial Health Score: C

Explanation:
The company shows signs of financial viability but with limited resources and a tight liquidity position. The micro-entity scale, very low net assets, and minimal working capital suggest a fragile financial condition. While there are no immediate distress signals, the small buffer in current assets over liabilities indicates vulnerability to unexpected cash flow shocks.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	25,003	Represents cash or near-cash resources; relatively low but stable.
Current Liabilities	23,520	Obligations due within 1 year; close to current asset levels.
Net Current Assets (Working Capital)	1,482	Positive but very slim margin; "healthy cash flow" is marginal.
Net Assets (Equity)	1,482	Low equity base; business has minimal financial cushion.
Average Number of Employees	1	Indicates a very small operation, possibly owner-managed.

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3. Diagnosis: Financial Health and Business Condition

Maaz Consulting Limited is a micro-entity operating in the accounting and auditing sector with a very modest financial footprint. The "vital signs" suggest the company is currently solvent with a positive net asset position, but the margin between current assets and liabilities is narrow, indicating limited liquidity reserves.

The consistent, albeit small, net assets over the last two years demonstrate some stability but also highlight a lack of growth or capital accumulation. The single-employee structure and exemption from audit reinforce the company's small scale and simple operations.

The symptoms of this financial profile include:

• Fragile liquidity: The working capital is positive but minimal, akin to a patient with low but stable blood pressure — manageable but requiring monitoring.
• Limited financial resilience: The low equity and working capital mean the company could be susceptible to financial stress if unexpected expenses or revenue shortfalls arise.
• Stable but stagnant: Slight decline in current assets and net assets from 2023 to 2024 suggests no significant expansion or investment.

Overall, the company is "stable but vulnerable," like a patient managing a chronic condition well but needing lifestyle adjustments to avoid deterioration.

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4. Recommendations to Improve Financial Wellness

• Build cash reserves: Aim to increase current assets relative to liabilities, improving working capital to a safer margin. This can be done by accelerating receivables collection, controlling payables, or injecting additional capital.
• Monitor cash flow closely: Implement rigorous cash flow forecasting to anticipate liquidity needs and avoid shortfalls.
• Consider growth strategies: Explore opportunities to increase income or diversify services to enhance profitability and build retained earnings.
• Cost management: Maintain tight control over expenses given the small scale; avoid unnecessary costs that could erode the slim equity base.
• Regular financial reviews: Schedule quarterly health checks of financials to detect early signs of distress and adjust strategies promptly.
• Prepare for audit exemption changes: If business grows beyond micro-entity thresholds, plan for potential audit requirements and increased reporting complexity.

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