MJK CONSULTING LIMITED

Executive Summary

MJK Consulting Limited shows strong financial improvement with significant growth in net assets and liquidity, reflecting a healthy and well-managed micro business. While the company’s current financial state is stable and promising, attention to cash flow management, risk diversification, and profitability tracking will be crucial for sustained growth and resilience.

MJK CONSULTING LIMITED - Analysis Report

Company Number: 13971752

Analysis Date: 2025-07-20 15:07 UTC

Financial Health Assessment for MJK CONSULTING LIMITED as of 31 March 2024

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1. Financial Health Score: B

Explanation:
MJK Consulting Limited demonstrates a solid and improving financial position for a micro-entity. The company shows strong growth in net assets and net current assets, indicating good liquidity and capital strength. However, as a very small business with a single employee and limited fixed assets, it remains vulnerable to operational risks and market fluctuations typical of micro companies. The score "B" reflects stability and healthy financial fundamentals but acknowledges the need for continued vigilance in managing working capital and growth.

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2. Key Vital Signs

Metric	31-Mar-2024	31-Mar-2023	Interpretation
Fixed Assets	£4,219	£3,243	Small but growing; indicates modest investment in long-term assets. Healthy for micro company.
Current Assets	£12,490	£6,870	Strong increase; suggests improved cash, receivables, or stock levels. Good liquidity.
Current Liabilities	£4,933	£5,963	Decreased slightly; manageable short-term obligations.
Net Current Assets	£7,557	£907	Significant improvement; excellent indicator of short-term financial health ("healthy cash flow").
Net Assets (Equity)	£10,816	£3,190	Nearly tripled; reflects retained earnings and capital injection, strengthening the company's balance sheet ("healthy financial pulse").
Shareholders' Funds	£10,816	£3,190	Same as net assets; owner’s equity has grown, underpinning financial resilience.
Employee Count	1	1	Very small workforce; low overhead but also limited capacity for scaling.

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3. Diagnosis: Financial Health Overview

MJK Consulting Limited’s financial "vital signs" reveal a company in a phase of early growth and consolidation. The sharp increase in net current assets and net equity over the past year is a positive symptom indicating the business has strengthened its liquidity and capital base. This suggests successful operations, good management of short-term obligations, and possible capital investment by the owner (Mrs. Melanie June Ellison).

The company operates as a micro private limited company in the financial intermediation sector (SIC 64999), with a very lean cost structure (1 employee) — this keeps fixed costs low but also means the business may be dependent on key individuals, a potential "single point of failure."

The balance sheet is "healthy" with net current assets well in excess of current liabilities, indicating robust working capital. The increase in fixed assets, although modest, points to some reinvestment in the business.

No audit was required, which is typical for micro entities, but this means there is less external financial scrutiny.

Potential vulnerabilities ("symptoms of distress" to monitor):

• Dependency on one director/employee.
• Limited asset base may constrain scaling or borrowing capacity.
• Absence of detailed profit and loss data limits visibility on profitability trends.

Overall, the company’s financial "heart rate" is steady and improving, indicating a well-managed micro enterprise with good prospects if current trends continue.

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4. Recommendations to Improve Financial Wellness

1. Maintain Strong Cash Flow Management:
   Continue to monitor current assets vs. liabilities closely. The large increase in net current assets is excellent, but cash flow can be volatile in micro businesses. Consider preparing monthly cash flow forecasts to anticipate any liquidity issues early.

2. Diversify Revenue and Reduce Dependency:
   With only one employee/director, the business is vulnerable if that individual is unavailable. Consider building a small team or subcontracting to reduce this risk and support growth.

3. Build Profitability Reporting:
   Even though external audit is not mandatory, develop internal profit and loss tracking to better understand revenue streams, cost drivers, and margins. This will help in strategic planning and attracting potential investors or lenders.

4. Plan for Growth Capital:
   If expansion is planned, the modest fixed asset base suggests limited collateral for loans. Explore alternative financing options such as owner investment, grants, or peer-to-peer lending.

5. Formalize Risk Management:
   Document key business risks (e.g., client dependency, regulatory changes in financial intermediation) and develop mitigation strategies to safeguard business continuity.

6. Compliance and Governance:
   Ensure all filings (accounts, confirmation statements) continue to be submitted timely to avoid penalties and maintain good standing.

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