MOMENTUM RETAIL CONSULTING LIMITED

Executive Summary

Momentum Retail Consulting Limited is financially healthy, with strong liquidity, growing net assets, and efficient working capital management reflecting sound business operations. The company shows no signs of financial stress and benefits from a lean, low-capital business model. Continued prudent cash management and strategic reinvestment will support future growth and sustained financial wellness.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

MOMENTUM RETAIL CONSULTING LIMITED - Analysis Report

Company Number: 12604015

Analysis Date: 2025-07-20 17:27 UTC

Financial Health Assessment for MOMENTUM RETAIL CONSULTING LIMITED (as at 31 May 2024)


1. Financial Health Score: A-

Explanation:
MOMENTUM RETAIL CONSULTING LIMITED demonstrates a strong financial position with healthy liquidity, net asset growth, and good working capital management. The company has no overdue filings, no debt distress symptoms, and positive retained earnings growth. A slight caution is noted in fixed asset depreciation and modest cash growth, but overall financial "vital signs" are robust for a small consulting firm.


2. Key Vital Signs

Metric 2024 Value (£) Interpretation
Cash and Cash Equivalents 38,049 Strong cash balance indicating healthy liquidity and ability to meet short-term obligations.
Current Liabilities 5,968 Low short-term liabilities, reducing risk of liquidity strain.
Net Current Assets 32,081 Positive working capital indicates the company can comfortably cover short-term debts.
Net Assets / Shareholders’ Funds 32,140 Increasing net assets from £21,457 in 2023 to £32,140 in 2024, signifying retained earnings growth.
Share Capital 10 Nominal share capital typical for small private companies; reflects company size.
Fixed Assets (Net Book Value) 73 Minimal fixed assets; low capital intensity consistent with consulting business model.
Cash Growth (2023-2024) +£7,910 Positive cash flow "pulse," showing improved liquidity year-over-year.
Current Liabilities Reduction -£3,350 Decreased liabilities reduce financial stress and improve short-term solvency.

Interpretation:
The company's liquidity "heartbeat" is strong with cash exceeding current liabilities by a wide margin. Working capital is robust, indicating operational efficiency and no signs of strain. The net asset base is growing, reflecting accumulated profits ("retained earnings") and prudent financial management.


3. Diagnosis

MOMENTUM RETAIL CONSULTING LIMITED exhibits the financial "vital signs" of a healthy, well-managed small business. Its liquidity is robust, with no "symptoms of distress" such as overdue liabilities or negative working capital. The growth in net assets and cash reserves suggests successful operations and profit retention. The company’s low fixed asset base aligns with its consultancy nature, indicating limited capital expenditure needs and flexibility.

The absence of employees (average number during the year was NIL) and modest cash balances imply a lean operation, possibly owner-managed with limited overheads. There are no signs of financial strain or credit risk, and the company remains compliant with filing deadlines, which is critical for maintaining corporate health.


4. Recommendations

To maintain or improve financial wellness, consider the following:

  • Maintain Strong Liquidity: Continue prudent cash management to retain a healthy buffer for unforeseen expenses or investment opportunities.
  • Monitor Fixed Assets Usage: Although minimal, ensure fixed assets are efficiently utilized and consider investing selectively if it improves operational efficiency.
  • Retain Profits for Growth: The company’s growing retained earnings provide a solid capital foundation—consider reinvesting profits to scale services or marketing.
  • Regular Financial Reviews: Implement quarterly financial "health checks" to catch early signs of any cash flow or liability issues.
  • Explore Growth Opportunities: With strong financial footing, consider expanding consultancy services or client base to leverage the company’s solid foundation.
  • Enhance Financial Reporting: Though exempt from audit, consider voluntary external review or preparing management accounts for deeper insight and stakeholder confidence.


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