N A W CONSULTING LTD

Executive Summary

N A W CONSULTING LTD is a newly established micro-entity demonstrating stable and positive working capital with no immediate liquidity concerns, indicating a sound financial starting point. However, limited financial data and small scale require careful monitoring, with recommendations focused on improving profitability transparency, cash flow management, and building financial reserves to support future growth.

N A W CONSULTING LTD - Analysis Report

Company Number: 14761564

Analysis Date: 2025-07-19 12:13 UTC

Financial Health Assessment for N A W CONSULTING LTD

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1. Financial Health Score: B-

Explanation:
For a micro-entity in its first year of trading, N A W CONSULTING LTD shows modest but positive indicators of financial health. The company has a positive net current asset position, indicating it can cover its short-term liabilities. However, the small scale of operations and limited financial data (no profit & loss details) warrant a cautious rating. The score reflects a stable but early-stage financial status with room for growth and improved financial robustness.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£12,415	Shows available liquid resources like cash or receivables, a healthy sign for short-term needs.
Current Liabilities	£10,477	Debts or obligations due within one year; manageable given current assets.
Net Current Assets	£1,938	Positive working capital, indicating the company can meet short-term obligations comfortably.
Net Assets (Equity)	£1,938	Reflects shareholder funds; positive but modest, typical for a new micro company.
Account Category	Micro	Simplified filing regime, small scale, limited historical data for trend analysis.
Company Age	1 year	Early-stage company, financial stability expected to evolve as business develops.
Directors & PSC	Two directors with equal control	Balanced management and ownership structure which is positive for governance.
Overdue Filings?	No	Compliance with filing deadlines indicates good administrative health.

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3. Diagnosis

N A W CONSULTING LTD is in the early stages of its business lifecycle, exhibiting the "vital signs" of a start-up with a healthy but small-scale balance sheet. The positive working capital signals the company is not currently under liquidity stress — a good "pulse" indicator showing no immediate cash flow distress symptoms. That said, the absence of a profit and loss statement limits insight into profitability or operational efficiency, akin to a patient with stable vital signs but unknown internal health status.

The company's micro status and limited financial history restrict detailed trend analysis, but the positive equity and current asset coverage suggest the company is structurally sound for its size and age. This is a typical "early recovery" phase where cautious optimism is warranted, but attention should be paid to growth in revenue, profitability, and cash flow over the next periods.

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4. Recommendations

To strengthen financial wellness and support sustainable growth, the company should consider:

1. Profit & Loss Transparency:
   Begin preparing and reviewing profit and loss accounts regularly to monitor operational health — akin to checking internal organ function beyond external vital signs.

2. Cash Flow Management:
   Maintain a close watch on cash inflows and outflows to ensure liquidity remains "healthy" as business scales, preventing symptoms of financial distress.

3. Build Reserves:
   Aim to increase retained earnings and shareholder funds over time to create a financial cushion against unforeseen challenges, similar to building immunity.

4. Growth Planning:
   Develop realistic financial forecasts and budgets to anticipate funding needs and manage working capital efficiently.

5. Compliance Vigilance:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain regulatory health.

6. Seek Financial Advice:
   Engage with financial advisors or accountants periodically to "diagnose" emerging risks and optimize financial strategies as the company grows.

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