P E MANAGEMENT (SW) LTD

Executive Summary

P E MANAGEMENT (SW) LTD exhibits robust financial health with strong liquidity, positive working capital, and growing shareholder equity, reflecting a well-managed and stable company. The firm’s financial "vital signs" indicate no distress, and its upward trajectory suggests a solid foundation for sustainable growth. Continued prudent financial management and strategic investment will enhance its resilience and future prospects.

P E MANAGEMENT (SW) LTD - Analysis Report

Company Number: 12776116

Analysis Date: 2025-07-20 13:32 UTC

Financial Health Assessment of P E MANAGEMENT (SW) LTD

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1. Financial Health Score: B

Explanation:
P E MANAGEMENT (SW) LTD demonstrates solid financial stability and growth in key areas such as net assets and working capital over the recent years. The company maintains a healthy cash balance relative to its current liabilities, indicating good liquidity. While the scale of operations is modest, the upward trend in equity and net current assets reflects sound financial management. There is room for improvement in areas such as increasing fixed assets efficiency and possibly diversifying asset structure, but no significant symptoms of financial distress are evident.

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2. Key Vital Signs

Metric	2024 Figures (£)	Interpretation
Current Assets	34,558	Adequate short-term assets to cover near-term obligations. Growing steadily over last years.
Cash & Cash Equivalents	23,540	Strong liquidity position; cash covers current liabilities comfortably.
Debtors (Receivables)	11,018	Reflects revenue generation and credit extended to clients; stable and manageable.
Current Liabilities	17,278	Obligations due within a year; well covered by cash and current assets.
Net Current Assets	17,280	Positive working capital suggests good operational liquidity and ability to meet short-term debt.
Net Assets (Equity)	18,283	Increasing shareholder equity indicates retained earnings and financial growth.
Share Capital	100	Minimal share capital, typical for small private companies; equity largely from retained profits.

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3. Diagnosis: Financial "Health" Overview

• Liquidity (Healthy Cash Flow):
  The company has a strong liquidity position, with cash on hand exceeding current liabilities by a substantial margin. This is akin to a patient having a strong pulse and stable blood pressure, meaning the company can meet its immediate financial obligations without strain.

• Working Capital (Good Circulation):
  Positive net current assets indicate the company has enough short-term assets to cover its short-term liabilities, ensuring smooth day-to-day operations without cash flow blockages.

• Profit Retention (Vital Organ Functioning):
  The consistent growth in retained earnings (profit and loss account) shows the company is generating profits and retaining them, which strengthens its financial "immune system" and ability to reinvest.

• Fixed Assets (Structural Health):
  Tangible assets such as office equipment are minimal and slightly depreciated, which is expected for a management consultancy. This reflects a "lean" asset base, typical for service industries, but also suggests limited investment in physical assets.

• Debt and Liabilities (No Symptoms of Distress):
  The company carries limited debt, mostly short-term liabilities related to taxation and social security. There are no signs of overdue payments or excessive creditor pressure, indicating no financial distress symptoms.

• Growth Trend (Recovery and Strengthening):
  Over the last four years, net assets have nearly quadrupled from £4,902 to £18,283, showing a healthy recovery and strengthening akin to a patient improving steadily after treatment.

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4. Recommendations: Enhancing Financial Wellness

• Maintain Strong Cash Management:
  Continue to monitor cash flow carefully, ensuring receivables are collected promptly to sustain liquidity. Consider setting up tighter credit control if debtor days start to extend.

• Evaluate Asset Utilization:
  Although fixed assets are limited, assess whether investment in technology or equipment could improve efficiency and service delivery, potentially boosting revenue.

• Build Capital Reserves:
  Consider increasing share capital modestly or creating reserves to provide additional financial buffer, enhancing resilience against unforeseen expenses or economic downturns.

• Tax and Liability Planning:
  Keep close track of tax liabilities and social security costs to avoid surprises. Explore any eligible tax reliefs or incentives applicable to management consultancies.

• Strategic Growth Planning:
  Leverage the positive financial health to explore business development opportunities, such as expanding client base or service offerings, to drive sustainable growth.

• Regular Financial Health Check-ups:
  Schedule periodic reviews of financial metrics to detect early any emerging symptoms of financial strain, analogous to regular health screenings.

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