MOORE CONSULTING ENGINEERS LTD

Executive Summary

MOORE CONSULTING ENGINEERS LTD shows strong financial health characterized by positive working capital, growing net assets, and prudent liability management, reflecting recovery from earlier distress. To maintain and enhance this stability, the company should focus on preserving liquidity, building equity reserves, and exploring growth financing cautiously. Regular financial monitoring and cost efficiency will be key to sustaining long-term financial wellness.

MOORE CONSULTING ENGINEERS LTD - Analysis Report

Company Number: 12668312

Analysis Date: 2025-07-29 20:11 UTC

Financial Health Assessment Report for MOORE CONSULTING ENGINEERS LTD

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1. Financial Health Score: B

Explanation:
MOORE CONSULTING ENGINEERS LTD demonstrates a solid financial position with positive net current assets and net assets growing steadily over recent years. The company is maintaining a healthy buffer of working capital, indicating good short-term financial stability. However, as a micro-entity with modest asset levels and limited equity base, there is room for improvement in liquidity management and resource optimization to reach the highest financial wellness grade.

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2. Key Vital Signs

Metric	2024 Figure (£)	Interpretation
Current Assets	30,350	Adequate liquid assets to cover short-term obligations, indicating good liquidity.
Current Liabilities	3,780	Low short-term debts, manageable relative to assets.
Net Current Assets	26,570	Positive working capital shows ability to meet immediate obligations—a healthy cash flow sign.
Net Assets	26,570	Positive equity, growing steadily from a negative base in 2021, showing financial recovery.
Share Capital	100	Minimal share capital; main equity built through retained earnings.
Employees	2	Small workforce consistent with micro-entity status, manageable operational scale.

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3. Diagnosis: Financial "Health" and "Symptoms"

• Healthy Cash Flow and Liquidity: The company’s current assets comfortably exceed current liabilities by a wide margin, indicating strong liquidity. This is a vital sign of a well-functioning business capable of meeting short-term financial demands without strain.

• Recovery from Past Distress: In 2021, the company showed a negative net current asset position (-£2,374), a symptom of financial distress potentially linked to start-up or operational challenges. Since then, there has been a marked improvement, with net assets growing to £26,570 in 2024, suggesting effective management and financial stabilization.

• Stable Equity Position: The company’s net assets and shareholders’ funds are aligned, reflecting no hidden liabilities or off-balance sheet concerns. This equity growth supports ongoing operations and potential future investments.

• Low Leverage: Minimal liabilities relative to assets reduce financial risk, but also imply limited external capital use, which might restrict growth opportunities if not managed prudently.

• Micro-Entity Scale: As a micro-entity, the company operates on a small scale with simplified reporting and limited resources. This scale suits the consulting nature but requires careful cash flow management and cost control to maintain health.

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4. Recommendations: Prescriptions for Financial Wellness

• Maintain Strong Working Capital: Continue to monitor and optimize current assets and liabilities to preserve the healthy net current asset position, ensuring operational liquidity remains robust.

• Build Reserves: Consider retaining profits to strengthen the equity base, providing a cushion against potential future downturns or unexpected expenses, analogous to building immunity against financial shocks.

• Explore Growth Financing: Evaluate options for external funding or credit lines to support strategic growth initiatives, while avoiding over-leverage that could induce financial stress symptoms.

• Cost Control and Efficiency: Regularly review operational expenses to identify savings or efficiency improvements, ensuring the company stays lean and responsive in a competitive consulting environment.

• Regular Financial Monitoring: Implement periodic financial reviews and forecasting to detect early warning signs of distress, akin to routine health check-ups, allowing proactive management actions.

• Compliance and Reporting: Continue timely filings and compliance with Companies House requirements to avoid regulatory penalties, which could strain resources.

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