OXENDEN CONSULTING LIMITED

Executive Summary

Oxenden Consulting Limited exhibits strong financial health with growing net assets and positive working capital, indicating stable liquidity and profitability typical of a micro-sized consultancy. The company is financially sound with no immediate distress signs but should monitor rising current liabilities and continue building reserves to sustain future growth. Maintaining disciplined financial management will support ongoing wellness and resilience.

OXENDEN CONSULTING LIMITED - Analysis Report

Company Number: 13088979

Analysis Date: 2025-07-20 14:49 UTC

Financial Health Assessment of Oxenden Consulting Limited

---

1. Financial Health Score: B

Oxenden Consulting Limited demonstrates a solid financial footing with positive net assets and healthy working capital growth. While the company is small and operating under micro-entity reporting standards, the upward trend in net current assets and net assets suggests stable financial health. The absence of debt-related distress and maintained liquidity are strong positives, but the relatively low fixed asset base and modest shareholder capital temper the score from an A.

---

2. Key Vital Signs

• Net Current Assets (Working Capital): £24,563 (2024) up from £19,715 (2023)
  Interpretation: Indicates growing liquidity and an ability to cover short-term liabilities comfortably. Healthy cash flow management is evident, suggesting the company is not under immediate financial stress.

• Net Assets (Shareholders’ Funds): £24,906 (2024) up from £20,230 (2023)
  Interpretation: Positive net assets indicate the company’s total assets exceed its liabilities, reflecting a sound capital structure and retained earnings growth.

• Fixed Assets: £343 (2024) down from £515 (2023)
  Interpretation: Minimal investment in long-term assets. This is typical for a consultancy business, where intellectual capital and services drive value rather than physical assets.

• Current Liabilities: £44,728 (2024) up from £18,938 (2023)
  Interpretation: A noticeable increase in short-term liabilities, but this is well-covered by current assets. Monitoring this growth is important to ensure liabilities do not outpace assets.

• Share Capital: £100
  Interpretation: Nominal share capital, typical for micro-entities; the bulk of equity is accumulated reserves.

• Director’s Loan Account: Outstanding loan reduced to £2,106 as of 30/09/24 and fully repaid shortly after (05/12/24)
  Interpretation: Director advances are being managed responsibly with repayment made promptly, indicating no misuse of company funds.

• Employee Count: 1 (the director)
  Interpretation: Sole trader setup within a limited company structure. Low overheads but also dependent on the director’s capacity.

---

3. Diagnosis: What the Numbers Reveal About Business Health

Oxenden Consulting Limited presents a stable financial profile typical of a micro-sized consultancy firm. The company has symptoms of good liquidity and is maintaining a healthy balance between current assets and liabilities. The increase in net current assets and net assets year-on-year is a positive sign of retained profitability and capital accumulation, akin to a patient showing steady improvement. The relatively low fixed assets and single employee count are consistent with the nature of the business and do not raise concerns.

The rise in current liabilities warrants attention as a mild symptom of increased short-term financial obligations, but these remain well-covered by current assets, indicating no immediate risk of solvency issues. The director’s loan has been responsibly handled and repaid, which is a healthy governance signal.

Overall, the company appears financially sound, with no major symptoms of distress such as negative working capital, cash flow problems, or excessive gearing. However, being a micro entity with limited asset base, the company’s resilience depends heavily on maintaining profitable operations and managing liabilities prudently.

---

4. Recommendations: Specific Actions to Improve Financial Wellness

• Monitor and Manage Current Liabilities: While current assets cover liabilities now, the significant increase in short-term liabilities should be regularly reviewed to avoid future liquidity strain. Aim to keep liabilities in line with asset growth.

• Build Cash Reserves: Continue to build on working capital to create a buffer for unexpected expenses or downturns, enhancing financial resilience.

• Consider Diversifying Assets or Revenue Streams: Explore modest investments in intangible assets like software tools or marketing that could enhance service delivery and client base, improving long-term growth prospects.

• Maintain Rigorous Financial Controls: Continue managing director loans and related party transactions transparently to avoid governance issues.

• Plan for Growth: As a micro-entity with one employee, scaling operations carefully with an eye on managing overheads and cash flow will be essential for sustaining financial health.

• Regular Financial Reviews: Quarterly financial health checks similar to this diagnostic can help spot early symptoms of financial distress and allow proactive management.

---