MIJI CONSULTING LTD

Executive Summary

MIJI CONSULTING LTD demonstrates very healthy financial condition with strong liquidity and growing equity, typical of a well-managed micro IT consultancy. The company’s cash flow and capital structure are robust, with no signs of financial distress. Continued prudent financial management and formal planning will support sustainable growth and long-term stability.

MIJI CONSULTING LTD - Analysis Report

Company Number: 13826675

Analysis Date: 2025-07-20 12:48 UTC

Financial Health Assessment for MIJI CONSULTING LTD

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1. Financial Health Score: A-

Explanation:
MIJI CONSULTING LTD exhibits strong financial health for a micro entity in its early years. The company has shown significant growth in net assets and working capital, indicating a healthy liquidity position and sound capital structure. The slight deduction from a full A grade is due to the small scale and limited financial history, typical for a young micro company.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£274	Minimal long-term assets; typical for service sector.
Current Assets	£59,988	Healthy cash and short-term receivables.
Current Liabilities	£13,876	Manageable short-term debts.
Net Current Assets	£46,382	Strong working capital; positive sign of liquidity.
Net Assets / Shareholders’ Funds	£46,656	Improving equity base; business is building value.
Average Number of Employees	1	Sole operator or very small team; low overhead.
Cash Advances to Director	£4,703 (repaid)	Short-term loan to director fully repaid; no ongoing related-party debt.

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3. Diagnosis: What the Financial Data Reveals

MIJI CONSULTING LTD’s financial “vital signs” suggest a robust and stable condition. The company’s net current assets have nearly quadrupled from £12,125 in 2023 to £46,382 in 2024, reflecting a healthy cash flow and prudent management of short-term liabilities. This strong liquidity position is akin to a patient with a steady heartbeat and good oxygen levels — the company has sufficient resources to meet immediate obligations and invest in growth.

The net assets have likewise increased significantly, from £12,535 to £46,656, indicating the business is accumulating retained earnings or capital injections, thereby strengthening its financial “immune system.” The small fixed asset base is not a concern given the industry (IT consultancy), which typically relies more on human capital than physical assets.

There are no signs of financial distress such as overdue filings, excessive liabilities, or large related party balances outstanding. The director’s full control over shares and voting rights suggests clear governance albeit concentrated ownership.

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4. Recommendations: Steps to Maintain and Improve Financial Wellness

• Maintain Strong Cash Flow Controls: Continue to monitor receivables and payables closely to sustain the current liquidity “pulse.” Healthy cash flow is essential to avoid any “symptoms” of distress.

• Build Financial Reserves: Consider setting aside some profits as retained earnings to create a buffer for unexpected expenses or investment opportunities, strengthening the company’s “immune response” to economic shocks.

• Formalize Financial Planning: Develop a simple budget and forecast model to anticipate future cash needs and profitability trends, enabling early detection of potential financial “symptoms.”

• Explore Growth Opportunities: With a solid financial foundation, cautiously evaluate opportunities for expanding service offerings or client base to enhance long-term viability.

• Monitor Director Advances: Although the short-term advance to the director was repaid, it’s prudent to avoid frequent director loans to maintain clean financial records and avoid potential liquidity “imbalances.”

• Compliance and Governance: Continue timely filing of accounts and confirmation statements to prevent penalties and maintain regulatory “health.”

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