ORJ2 CONSULTING LIMITED

Executive Summary

ORJ2 Consulting Limited is financially healthy for a new micro-entity, showing positive working capital and a solid equity base. Its lean structure and compliance with filing requirements reflect good governance. Future focus should be on growing revenue streams and maintaining liquidity to sustain financial wellness as the business scales.

ORJ2 CONSULTING LIMITED - Analysis Report

Company Number: 15042653

Analysis Date: 2025-07-29 16:04 UTC

Financial Health Assessment of ORJ2 CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
ORJ2 Consulting Limited demonstrates a generally sound financial position for a newly incorporated micro-entity. With positive net current assets and shareholders’ funds, the company shows healthy liquidity and equity base. However, given the very early stage of trading and limited operational history, there is inherent risk and uncertainty, preventing a top grade at this point.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,376	Very low capital investment, typical for micro companies starting operations.
Current Assets	21,546	Adequate short-term resources, indicating available liquid assets and receivables.
Current Liabilities	13,766	Manageable short-term debts, less than current assets, indicating positive working capital.
Net Current Assets (Working Capital)	7,780	Positive working capital "heartbeat," indicating ability to cover short-term obligations comfortably.
Total Assets Less Current Liabilities	9,156	Shows net value after covering immediate debts.
Net Assets / Shareholders' Funds	8,356	Equity base is positive, indicating no insolvency symptoms and a solid foundation for growth.
Employees	1 (Director)	Minimal staff, which is common for a start-up consultancy.

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3. Diagnosis: Business Financial Health

• Liquidity & Cash Flow: The company has a healthy cash flow pulse, with current assets exceeding current liabilities by £7,780, allowing it to meet short-term obligations without strain. This indicates there are no immediate symptoms of liquidity distress.

• Capital Structure: With net assets of £8,356 and all equity-financed by the sole shareholder, the company is free from debt burden, providing a clean financial "heart rhythm" to support initial growth.

• Operating Scale & Risk: As a micro entity, the company is at an early stage of development with limited fixed assets and a single employee (the director). This lean structure reduces overhead but also means growth and revenue generation are in nascent stages, which is a typical "recovery phase" in business lifecycle.

• Compliance & Governance: The company is active and up-to-date with filings and accounts, showing good governance practices that reduce regulatory risks—akin to following medical guidelines for ongoing health monitoring.

• Business Activity: Operating in engineering-related consulting (SIC 71122) suggests a knowledge-driven service model with potentially scalable revenue streams if client acquisition is successful.

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4. Recommendations: Improving Financial Wellness

• Build Cash Reserves: Continue to maintain positive working capital to buffer against unexpected expenses or delays in client payments. Healthy cash reserves are like a strong immune system against financial shocks.

• Revenue Growth Focus: Develop a consistent pipeline of consulting contracts to build recurring revenue, which will strengthen the company’s financial "muscle" over time.

• Cost Management: Keep overhead low at this stage, but consider strategic investments in marketing or technology that can improve client acquisition and operational efficiency.

• Financial Reporting: As the company grows beyond micro thresholds, consider enhanced financial reporting and possibly external audit to improve credibility with lenders and clients.

• Risk Management: Monitor potential liabilities and ensure contractual protections are in place, as early-stage consultancies can be vulnerable to client disputes or payment delays.

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