NADINE MIDDLETON CONSULTING LIMITED

Executive Summary

Nadine Middleton Consulting Limited maintains a solvent position but shows signs of financial strain with declining net assets and liquidity. Immediate focus on cash flow improvement, director loan management, and operational review is critical to restore financial health and avoid further deterioration.

NADINE MIDDLETON CONSULTING LIMITED - Analysis Report

Company Number: 13971722

Analysis Date: 2025-07-29 18:01 UTC

Financial Health Assessment Report for NADINE MIDDLETON CONSULTING LIMITED

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1. Financial Health Score: C

Explanation:
The company currently displays a moderate financial condition with sufficient working capital but a marked decline in net assets over the last year. The drop from £5,060 (2023) to £1,967 (2024) in net assets signals signs of financial stress or contraction, warranting attention. While the company remains solvent with positive net current assets, the reduction in liquidity and overall equity suggests potential challenges ahead if no corrective action is taken.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Current Assets	£1,980	£12,201	Sharp decline in liquid assets; cash flow concern.
Current Liabilities	£13	£7,196	Significant reduction in short-term debts—a positive.
Net Current Assets (Working Capital)	£1,967	£5,060	Positive, but decreased working capital indicates tightening liquidity.
Net Assets (Equity)	£1,967	£5,060	Equity has dropped substantially, indicating erosion of company value.
Advance to Director	£1,606	N/A	Director loan outstanding; potential liquidity tied up in receivables.
Employees	0	1	Workforce reduction may reflect cost-cutting or reduced operations.

Interpretation of Vital Signs:

• The company’s “cash flow pulse” has weakened, as shown by the significant drop in current assets, which can be likened to a weakening heartbeat in a patient.
• The very low current liabilities are a positive sign, indicating low short-term obligations.
• However, the net assets decline signals “symptoms of distress,” possibly due to operational losses, director loan advances, or asset disposals.
• The outstanding loan to the director represents an internal receivable; its collectability affects liquidity health.
• The drop in employees might signal cost control but also potentially reduced business activity.

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3. Diagnosis

Overall Financial Condition:
NADINE MIDDLETON CONSULTING LIMITED is currently solvent with positive net current assets, reflecting an ability to meet short-term obligations. However, the company exhibits symptoms of financial strain, manifested by a significant reduction in net assets and current assets over the last financial year. The shrinking equity base is a red flag that the company may have experienced operational losses, capital withdrawals, or investments that have not yet yielded returns.

The director’s loan advanced during the year, amounting to £1,606, further ties up cash resources and may limit operational flexibility. The absence of employees suggests a lean operational structure, which while controlling costs, could constrain growth or service delivery capability.

In medical terms, the company is stable but shows early signs of “financial fatigue” requiring intervention to prevent deterioration.

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4. Recommendations

• Improve Cash Flow Management:
  Strengthen cash inflows and control outflows to rebuild current assets. Consider accelerating receivables collection and reviewing payment terms.

• Review Director Loan:
  Assess the timing and terms for repayment of the director advance to restore liquidity and reduce internal financial strain.

• Operational Review:
  Evaluate service offerings and market demand to identify opportunities to increase revenue and profitability, reversing equity erosion.

• Cost Control Measures:
  Continue prudent expense management but balance with investments in growth-driving activities.

• Financial Monitoring:
  Establish more frequent financial health checks (quarterly cash flow forecasts and balance sheet reviews) to catch early signs of distress.

• Consider External Advice:
  If the trend continues downward, consult financial advisors for restructuring or additional funding options to maintain healthy financial “vital signs.”

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