MAKAENO CONSULTANCY LIMITED

Executive Summary

MAKAENO CONSULTANCY LIMITED operates with minimal financial resources, maintaining a consistently low net asset base and working capital over five years. This tight liquidity and capitalization pose risks to operational resilience and growth potential. Strengthening equity, improving cash reserves, and enhancing profitability are critical steps to improve the company's financial health and ensure sustainable future performance.

MAKAENO CONSULTANCY LIMITED - Analysis Report

Company Number: 13139192

Analysis Date: 2025-07-29 20:53 UTC

Financial Health Assessment of MAKAENO CONSULTANCY LIMITED

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1. Financial Health Score: D

Explanation:
The company’s financial position is extremely fragile. While it maintains a positive net current asset position (£100) and net assets (£100), these figures are minimal and indicate a very tight financial cushion. The consistent minimal net assets and working capital over five years suggest a "symptom of distress" with limited financial resilience. The tiny share capital (£1.00) also signals undercapitalization. Overall, the company is barely sustaining itself financially and lacks the robustness expected even for a micro-entity.

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2. Key Vital Signs

Metric	Latest Value (2025)	Interpretation
Current Assets	£986	Very low cash or liquid assets; signals limited liquid resources.
Current Liabilities	£886	Current obligations nearly equal current assets; tight liquidity.
Net Current Assets	£100	Positive but minimal working capital; risk of cash flow stress.
Net Assets (Shareholders’ Funds)	£100	Extremely low equity base; insufficient buffer for losses.
Share Capital	£1.00	Minimal capital invested; weak financial foundation.
Number of Employees	2	Small team consistent with micro company size.
Consistency over years	Net assets steady at £100 for 5 years	No growth or improvement; stagnation in financial health.

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3. Diagnosis

MAKAENO CONSULTANCY LIMITED presents as a micro-entity with a consistently minimal financial buffer over the last five years. The business shows "symptoms of financial frailty" — working capital and net assets hover at just £100, which is insufficient to absorb any financial shocks or operational downturns. The company's liquidity is extremely tight, meaning any unexpected expense or delay in receivables could lead to cash flow problems.

Despite being operational and compliant with filings, the low asset base and minimal capital investment suggest the business is either in a startup phase without significant revenue generation or operating at a break-even level with very limited profitability or asset accumulation.

The director’s professional background as a medical doctor and the nature of SIC codes (human health activities, general medical practice) indicate a professional services consultancy likely dependent on a small client base. This limited scale and financial footprint restrict growth potential and resilience.

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4. Recommendations

• Increase Capitalization: Consider injecting additional equity capital to build a stronger financial foundation. This will enhance the company’s ability to withstand operational risks and invest in growth.

• Improve Cash Reserves: Build cash reserves to ensure healthy cash flow, avoiding the "symptom of distress" associated with tight liquidity. Even micro-entities benefit from a buffer to manage timing mismatches between income and expenses.

• Focus on Profitability: Review pricing, service offerings, and cost management to improve profitability and generate retained earnings, which will increase net assets over time.

• Monitor Working Capital Closely: Maintain tight control over receivables and payables to avoid liquidity crunches. Consider short-term financing options if needed to smooth cash flow cycles.

• Strategic Growth Planning: Explore ways to grow client base and diversify services to improve turnover and financial stability, aligning with the director's expertise in medical consultancy.

• Regular Financial Reviews: Implement periodic financial health checks to detect early signs of trouble and adjust operations proactively.

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