P3M CONSULTING LTD

Executive Summary

P3M CONSULTING LTD exhibits solid financial health for a micro-entity startup, with positive net assets and ample working capital signaling good short-term liquidity and solvency. The company should focus on building cash reserves, managing receivables efficiently, and planning for sustainable growth to strengthen its financial resilience. Maintaining compliance and proactive financial planning will support continued business wellness as it matures.

P3M CONSULTING LTD - Analysis Report

Company Number: 14720387

Analysis Date: 2025-07-20 15:48 UTC

Financial Health Assessment for P3M CONSULTING LTD (As of 31 March 2024)

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1. Financial Health Score: B

Explanation:
P3M CONSULTING LTD demonstrates a sound financial position typical for a newly incorporated micro-entity. The company shows positive net assets and healthy working capital, signaling good initial financial stability. However, as a very young business with limited operating history and modest asset base, there is room for improvement towards a more robust financial footing.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	6,163	Small long-term assets, typical for a consulting startup investing minimally in equipment.
Current Assets	89,816	Adequate short-term assets, including cash and receivables, ensuring liquidity to meet obligations.
Current Liabilities	65,269	Short-term debts are significant but comfortably covered by current assets.
Net Current Assets	24,547	Positive working capital indicating the company can cover short-term liabilities with ease.
Total Assets less Current Liabilities	30,710	Reflects a strong asset base after considering immediate debts.
Creditors after 1 Year	434	Minimal long-term liabilities, indicating low gearing and financial risk.
Net Assets / Shareholders Funds	30,276	Positive equity, meaning the company’s assets exceed liabilities, a key indicator of solvency.
Average Number of Employees	1	Very lean operation, consistent with a micro-entity.

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3. Diagnosis: Financial Condition Overview

P3M CONSULTING LTD is in a healthy financial state for a micro-entity startup. The company’s balance sheet shows a "healthy cash flow" picture, with current assets exceeding current liabilities by a comfortable margin, signaling no immediate liquidity concerns. The positive net assets and shareholder equity indicate the company is solvent and has not yet relied heavily on external borrowing, which is a positive symptom of financial prudence.

The micro-entity status means simplified reporting, but also reflects the company's small scale and early development stage. The company operates with minimal fixed assets, which is common for a management consultancy where intellectual capital is the main asset rather than physical equipment.

No symptoms of financial distress are evident: no overdue filings, no significant long-term liabilities, and a single director who owns controlling interest, which can allow for agile decision-making but also concentrates risk.

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4. Recommendations: Path to Enhanced Financial Wellness

• Build Cash Reserves: Although current assets are sufficient, it is advisable to maintain or grow cash reserves to weather unexpected expenses or downturns. This is akin to building a financial "immune system."

• Monitor Debtor Collections: Maintaining efficient collection of receivables will ensure ongoing liquidity — vital for a consulting business relying on timely payments.

• Plan for Growth: Consider investing in business development or technology to expand fixed assets prudently, supporting long-term sustainability.

• Maintain Accurate Records: Continue timely filings and compliance to avoid penalties that could act like "financial infections" impairing company health.

• Consider Financial Forecasting: Develop projections to anticipate funding needs and manage working capital proactively, akin to a regular health check-up.

• Risk Diversification: Given the single director and shareholder structure, consider future governance enhancements to spread operational risk and ensure business continuity.

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