Company Number: 12406145

Analysis Date: 2025-07-20 17:18 UTC

Financial Health Assessment for MALCOLM COOPER CONSULTANTS LIMITED (as of 31 January 2024)

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1. Financial Health Score: B

Explanation:
This company demonstrates solid improvement in financial stability over recent years, showing healthy growth in net assets and positive working capital. While it is not yet in the highest tier of financial robustness, the trends indicate a stable and growing business with manageable liabilities. The relatively small fixed asset base and modest share capital reflect its micro/small company status, appropriate for its consulting operations.

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2. Key Vital Signs

Vital Sign	2024 Value (£)	Interpretation
Fixed Assets	437	Minimal long-term investment; typical for service business.
Current Assets	13,835	Healthy short-term resources, including cash and receivables.
Cash	9,730	Strong cash position, indicating good liquidity ("healthy pulse").
Debtors (accounts receivable)	4,105	Moderate level of money owed by clients; manageable.
Current Liabilities	9,479	Short-term debts; increased significantly but still covered by current assets.
Net Current Assets (Working Capital)	4,356	Positive and growing, indicating good operational liquidity ("good blood flow").
Long-term Liabilities	149	Very low, showing minimal long-term financial burden.
Net Assets (Equity)	4,644	Positive and increasing, reflecting retained profits.
Share Capital	100	Nominal; typical for a private limited company setup.

Additional Ratios and Indicators:

• Current Ratio (Current Assets / Current Liabilities):
  = 13,835 / 9,479 ≈ 1.46
  Interpretation: Above 1, indicating the company can meet short-term obligations comfortably.

• Net Asset Growth:
  From negative £4,081 in 2020 to positive £4,644 in 2024. This turnaround signals a robust recovery and growth ("recovery from financial ailment").

• Cash Growth:
  Cash nearly doubled from £5,757 in 2023 to £9,730 in 2024, showing improved cash flow management.

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3. Diagnosis

Overall Financial Condition:
MALCOLM COOPER CONSULTANTS LIMITED is in a stable and improving financial state. The company has shown a clear trajectory of growth and recovery, moving from negative net assets in its initial years to a healthy equity position. The positive working capital and increased cash reserves suggest efficient management of operational funds and the ability to cover short-term liabilities without stress.

Symptoms of Financial Health:

• Growing net assets and shareholders’ funds indicate accumulated retained earnings and profitability over time.
• Strong cash reserves suggest healthy liquidity and ability to invest or cover unexpected expenses.
• Positive working capital supports smooth day-to-day operations without liquidity crunch.
• Minimal long-term liabilities reduce financial risk and interest burden.

No signs of distress such as excessive debt, negative working capital, or declining equity are currently evident. The company’s size and asset structure align with typical consulting firms, relying more on intellectual capital than fixed assets.

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4. Recommendations

To further enhance financial wellness and mitigate future risks, the following actions are advisable:

1. Maintain Cash Flow Vigilance:
   Continue monitoring cash inflows and outflows closely to sustain liquidity, especially given the consultancy business’s reliance on timely client payments.

2. Debtor Management:
   Implement or strengthen credit control policies to reduce debtor days and avoid cash flow bottlenecks.

3. Plan for Growth Investments:
   Consider incremental investments in fixed assets or technology that could improve service delivery or operational efficiency.

4. Manage Tax Liabilities:
   Taxation and social security creditors increased significantly (£9,274 in 2024 vs. £3,589 in 2023). Engage with tax advisers to optimize tax planning and ensure timely payments to avoid penalties or cash flow strain.

5. Build Contingency Reserves:
   Allocate a portion of profits to contingency funds or reserves for unexpected downturns or investment opportunities.

6. Regular Financial Review:
   Continue annual financial health assessments to detect early symptoms of distress and adjust strategies proactively.

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