Company Number: 14960688

Analysis Date: 2025-07-29 12:24 UTC

Financial Health Assessment Report for PARAGON CONSULTANCY GROUP LTD

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1. Financial Health Score: B

Explanation:
Given that PARAGON CONSULTANCY GROUP LTD is a newly incorporated micro entity (just over one year old), the financial data shows a solid foundation with positive net assets and no immediate liabilities. The company’s financial "vital signs" are robust for its stage of development, suggesting a healthy start. However, the limited operational history and small scale mean the score reflects promising potential rather than proven long-term stability.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	10,000	Investment in long-term resources; modest for startup
Current Assets	11,800	Liquid assets indicating available cash or receivables
Current Liabilities	0	No short-term debts; symptom of low financial stress
Net Current Assets	11,800	Healthy working capital; sufficient to cover short-term obligations
Provision for Liabilities	1,000	Small reserve for future obligations; prudent practice
Net Assets	20,800	Positive equity; company is solvent and financially stable
Shareholders’ Funds	20,800	Equity backing, primarily from the sole shareholder

• Cash Flow Symptom: No direct cash flow data provided, but absence of current liabilities and positive net current assets suggest a "healthy cash flow" scenario.
• Operating Scale: Average employees count is 2, indicating a lean operation.
• Ownership Control: 100% control by one director/shareholder ensures streamlined decision-making but less diversification in governance.

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3. Diagnosis

• Financial Condition: The company exhibits strong financial health typical of a micro entity in its infancy. The balance sheet shows a positive net asset position with no current liabilities, indicating no immediate financial distress. The working capital is positive, meaning the company can comfortably meet its short-term obligations.
• Growth and Risk Factors: As a new business, it lacks a track record of profitability or revenue growth data to assess sustainability fully. The small asset base and limited employee count suggest early-stage operations with corresponding risks related to market penetration and cash flow consistency.
• Governance: The sole director and shareholder arrangement simplifies governance but also concentrates risk and responsibility on one individual.
• Accounting and Compliance: Timely filing of accounts and confirmation statements indicates good compliance health, a positive sign reducing regulatory risk.

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4. Recommendations

• Cash Flow Monitoring: Maintain vigilant tracking of cash inflows and outflows to ensure liquidity remains strong as operations scale.
• Build Financial Reserves: Gradually increase provisions and reserves to buffer against unforeseen liabilities or market downturns.
• Diversify Governance: Consider adding additional directors or advisory board members to strengthen oversight and reduce key-person risk.
• Operational Scaling: With a solid financial base, cautiously expand operations and workforce while maintaining a balance between growth and financial prudence.
• Profitability Focus: Develop detailed financial forecasts and budgets to ensure the company moves toward sustained profitability.
• Regular Financial Reviews: Schedule quarterly reviews of financial statements to detect early symptoms of financial stress or opportunity.

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