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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