ND CONSULTANCY LTD

Executive Summary

ND CONSULTANCY LTD maintains a stable financial position with positive working capital and net assets indicative of healthy liquidity and solvency. While recent trends show a slight decline in net assets and working capital, the company remains financially sound with no immediate signs of distress. Ongoing vigilance in managing current liabilities and cash flow will ensure continued financial wellness and support future growth.

ND CONSULTANCY LTD - Analysis Report

Company Number: 12610848

Analysis Date: 2025-07-29 14:25 UTC

Financial Health Assessment of ND CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
ND CONSULTANCY LTD shows stable net assets and positive working capital over recent years, indicating a generally healthy financial position for a micro-entity. The slight decrease in net assets and net current assets in the latest year is not alarming but should be monitored. The company demonstrates a "steady heartbeat" in financial terms with no signs of acute distress, but some caution is warranted to maintain and improve liquidity and asset base.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024	Interpretation
Fixed Assets	£303	Very low long-term investment, typical for a consultancy micro company.
Current Assets	£50,507	Healthy level of liquid assets, suggesting good cash or receivables.
Current Liabilities	£38,405	Short-term obligations are significant but covered by current assets.
Net Current Assets (Working Capital)	£12,102	Positive working capital indicates the company can meet short-term debts comfortably.
Net Assets (Equity)	£12,405	Positive equity confirms the business is solvent and has a cushion of value beyond liabilities.
Shareholders’ Funds	£12,405	Represents the owner's stake, consistent with net assets.

Trend Notes:

• Working capital and net assets have decreased slightly from £12,429 to £12,102 and from £12,808 to £12,405 respectively over the last year, a mild "weakening pulse" but not a critical symptom.
• Fixed assets have declined modestly, indicating minimal reinvestment or asset disposal.
• Current liabilities have increased, suggesting growing short-term obligations that must be managed.

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3. Diagnosis: Financial Condition Assessment

ND CONSULTANCY LTD is a small, micro-entity consultancy firm with a stable but modest financial profile. The company maintains a healthy buffer of working capital, which is a key "vital sign" reflecting liquidity and ability to cover immediate debts. The positive net assets and shareholders’ funds confirm solvency and a "healthy heart" in terms of balance sheet strength.

There are no signs of financial distress or liquidity crunches. However, the slight downward trend in net current assets and net assets signals some caution; it may reflect either increased liabilities or slower asset growth. The company operates with minimal fixed assets, typical of a service-based consultancy, which reduces capital intensity and financial strain.

The consistent maintenance of positive working capital and equity over multiple years is a reassuring "steady heartbeat" indicating ongoing financial stability.

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4. Recommendations: Actions to Improve Financial Wellness

• Monitor and Control Current Liabilities: The increase in short-term liabilities should be carefully managed to prevent liquidity stress. Consider negotiating better payment terms or reducing short-term debts when possible.
• Enhance Cash Flow Management: Maintain or improve cash collections and limit overdue receivables to keep the current assets robust relative to liabilities. Healthy cash flow is vital for operational stability.
• Build Asset Base Gradually: Although not critical for consultancy, a slight increase in fixed assets or investments (e.g., technology, software) could improve operational efficiency and long-term value.
• Review Profit Retention: Ensure that profits are retained to strengthen the P&L reserve and shareholders’ funds, providing a stronger equity buffer against unforeseen costs.
• Regular Financial Review: Conduct quarterly financial health checks to catch early symptoms of distress such as declining liquidity or increasing payables.
• Prepare for Growth: If the company plans to scale, consider strategic financial planning to support increased working capital needs and potential capital expenditure.

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