NICO ASPINALL CONSULTING LTD

Executive Summary

Nico Aspinall Consulting Ltd currently faces financial fragility marked by a sharp decline in assets and net worth, though it remains solvent with no immediate liabilities. The company’s minimal financial resources signal a need for active revenue generation and potential capital infusion to restore its financial health. Prompt financial planning and cash flow management are critical to avoid further deterioration and to stabilize the business.

NICO ASPINALL CONSULTING LTD - Analysis Report

Company Number: 14365771

Analysis Date: 2025-07-19 12:43 UTC

Financial Health Assessment Report for Nico Aspinall Consulting Ltd
(as at 30 September 2024)

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1. Financial Health Score: D

Explanation:
The company’s financial health is currently weak, mainly due to a drastic decline in assets and net worth over the last year. While there are no immediate liabilities, the sharp drop from £24,023 net assets in 2023 to just £1,775 in 2024 signals distress or a significant reduction in business activity or capital. This score reflects a cautious outlook with concerns about sustainability without corrective measures.

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2. Key Vital Signs

Metric	2024 Value	2023 Value	Interpretation
Fixed Assets	£0	£255	No long-term assets in 2024, possibly sold off or fully depreciated.
Current Assets	£1,775	£44,193	Substantial drop suggests reduced cash/debtors; possible cash burn or low income.
Current Liabilities	£0	£20,426	No current debts in 2024, improved short-term solvency.
Net Current Assets	£1,775	£23,768	Sharp decline indicates worsening liquidity and working capital.
Net Assets (Shareholders’ Funds)	£1,775	£24,023	Loss of capital or reserves, indicating erosion of owner equity.
Employees	0	0	No staff; potentially a sole trader operation or consultancy with no payroll.

Interpretation of Vital Signs:

• Liquidity: The company maintains positive working capital and no liabilities, which is a good sign ("no symptoms of immediate cash flow blockage"), but the very low current assets imply limited cash for operational needs.
• Capital Erosion: The net assets have dropped by over 90%, a symptom of either significant losses, asset disposals, or owner withdrawals.
• Activity Level: Given the micro-entity status and zero employees, this appears to be a small-scale consulting operation, possibly inactive or minimally active this year.
• No Liabilities: The absence of creditors is a positive sign, indicating no immediate financial obligations threatening solvency.

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3. Diagnosis

The financial "patient" shows signs of severe capital depletion and reduced operational scale. Previously, the company held a reasonable buffer of assets and working capital, but in the latest year, these have drastically diminished. This could be due to a number of underlying causes such as:

• Reduced or no trading activity (consulting contracts may have ended or not been renewed).
• Owner’s withdrawal of funds or capital.
• Asset disposals or write-offs.
• Lack of reinvestment or income generation.

The absence of liabilities suggests that creditors have not yet become a problem, but the company’s "vital signs" indicate fragile financial health and limited resources to fund ongoing operations. The company is currently solvent but with minimal financial reserves, making it vulnerable to any unexpected expenses or downturns.

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4. Recommendations

To improve financial wellness and avoid worsening distress, the company should consider:

• Revenue Generation: Actively seek new consulting engagements to restore cash flow and rebuild working capital.
• Cost Management: Maintain minimal overhead costs given the lack of employees and fixed assets.
• Capital Injection: The sole shareholder could consider injecting fresh equity or loans to strengthen the balance sheet.
• Monitor Cash Flow: Establish a regular cash flow forecast to anticipate funding needs and avoid liquidity crunches.
• Financial Planning: Develop a simple budget and financial plan to stabilize operations and plan for growth or sustainability.
• Explore Asset Utilisation: If any intangible assets or goodwill exist, assess how to leverage these for business development.
• Regular Financial Review: Perform quarterly financial health checks to monitor recovery or early signs of further distress.

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