Company Number: 15054548

Analysis Date: 2025-07-20 12:52 UTC

Financial Health Assessment of MAP CONSULT (YORKSHIRE) LIMITED

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1. Financial Health Score: B-

Explanation:
MAP CONSULT (YORKSHIRE) LIMITED demonstrates a generally stable financial position for a company in its first full financial year since incorporation in August 2023. The company exhibits positive net assets and working capital, indicating a baseline of financial health. However, there are some early warning signs in the form of significant long-term creditors and provisions that temper the overall health assessment to a B- grade, reflecting a cautious outlook but no immediate distress.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	80,594	Represents liquid resources including cash and trade debtors. Healthy level for operational needs.
Cash on Hand	39,285	Reasonable cash reserve providing liquidity to meet short-term obligations.
Debtors	41,309	Amounts owed by customers, substantial but must be monitored for timely collection.
Current Liabilities	65,878	Short-term debts, including tax liabilities, slightly high relative to current assets but covered.
Net Current Assets (Working Capital)	14,716	Positive working capital, indicating ability to cover short-term liabilities with current assets.
Long-term Creditors	27,165	Significant non-current liabilities; should be monitored as a potential financial burden.
Provisions	10,483	Reflects anticipated future obligations; could impact liquidity if realised.
Net Assets (Shareholders' Funds)	20,001	Positive equity base, showing overall net worth of the company is above zero.
Called-up Share Capital	100	Minimal initial capital; common for new private companies.
Profit & Loss Reserve	19,901	Retained earnings accumulated since inception, showing some profitability or capital injections.

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3. Diagnosis: What the Financial Data Reveals

• Healthy Cash Flow Symptoms: The company holds a solid cash balance (£39,285) and positive net current assets (£14,716), which are vital signs of operational liquidity. This means the company can meet its short-term obligations without stress, akin to a patient with a steady pulse and good hydration.

• Receivables Management: Debtors (£41,309) are a significant portion of current assets. While this indicates active business, the company should ensure prompt collection to avoid cash flow strain—a symptom of potential liquidity congestion if not managed well.

• Liabilities and Provisions: Current liabilities stand at £65,878, primarily from corporation tax (£21,553) and social security/taxes (£16,025), which are common but require careful cash flow planning to avoid payment delays. Long-term liabilities (£27,165) and provisions (£10,483) are notable and represent future financial commitments that could stress the company’s financial system if they crystallize unexpectedly.

• Capital Structure: Shareholders' funds of £20,001 reflect a positive net worth, but the very low called-up share capital (£100) indicates the company is in its infancy with limited equity cushion. The accumulated P&L reserve suggests some profit retention or capital contributions.

• Accounting and Compliance: The company has complied with filing deadlines and has taken advantage of audit exemptions suitable for small companies, indicating good administrative health.

• Business Context: Operating in management consultancy (SIC 70229), the company likely relies on intellectual capital and client contracts, where timely payment and managing provisions (potential disputes or contract liabilities) are critical.

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4. Recommendations: Actions to Improve Financial Wellness

• Improve Receivables Collection: Implement stricter credit control and faster invoicing to reduce debtor days, enhancing cash flow and reducing liquidity risk.

• Manage Provisions and Long-term Liabilities: Regularly review and plan for provisions to ensure adequate reserves are maintained without compromising operational cash. Explore refinancing or restructuring options if long-term creditors impact financial flexibility.

• Strengthen Equity Base: Consider increasing share capital or retaining earnings to build a stronger equity buffer, improving financial resilience against future shocks.

• Tax Planning: Closely monitor corporation tax and social security liabilities to avoid cash flow surprises and penalties.

• Cash Flow Forecasting: Maintain detailed rolling cash flow forecasts to anticipate funding needs and avoid short-term liquidity distress, akin to regular vital sign monitoring in a patient.

• Operational Efficiency: Given the consultancy nature, focus on optimizing overheads and fixed assets usage (notably motor vehicles and equipment) to prevent asset impairment and unnecessary depreciation charges.

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