PAUL MONAHAN CONSULTING LIMITED

Executive Summary

Paul Monahan Consulting Limited shows a solid financial foundation for a micro consultancy start-up, with strong liquidity and positive net assets indicating sound financial health. The company is well-positioned but remains dependent on its sole director and early-stage client development. Continued focus on cash flow management, client diversification, and scaling readiness will support future financial wellness.

PAUL MONAHAN CONSULTING LIMITED - Analysis Report

Company Number: NI696138

Analysis Date: 2025-07-20 12:34 UTC

Financial Health Assessment Report: PAUL MONAHAN CONSULTING LIMITED
Assessment Date: 2024-12-XX (based on latest accounts date 2024-04-30)

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1. Financial Health Score: B

Explanation:
This company demonstrates a sound financial position typical for a newly incorporated micro entity. It exhibits strong working capital, positive net assets, and no signs of distress such as overdue filings or liabilities exceeding assets. However, the limited scale of operations and very recent inception (incorporated April 2023) mean it is still in an early, formative stage of financial health development.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	657	Minimal investment in long-term assets, normal for a micro consultancy service provider.
Current Assets	48,073	Healthy level of short-term assets, primarily cash/debtors, indicating liquidity.
Current Liabilities	18,199	Manageable short-term obligations; not overly burdensome relative to assets.
Net Current Assets (Working Capital)	29,874	Positive and sizeable working capital, a "healthy cash flow" indicator ensuring smooth operations.
Total Assets less Current Liabilities	30,531	Assets comfortably cover short-term debts, reassuring financial stability.
Net Assets (Shareholders' Funds)	29,091	Solid equity base for a micro-entity, reflecting retained earnings or initial capital injection.
Employee Count	1	Sole director/employee; typical for consultancy start-ups, limiting payroll liabilities.
Filing Status	Up to date	No overdue accounts or confirmation statements; indicates compliance and good governance.

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3. Diagnosis: Financial Condition and Business Health

The company’s financial "vital signs" reveal a stable economic "heartbeat" for its size and stage:

• Liquidity and Solvency:
  The company’s positive net current assets (£29,874) indicate it has ample short-term assets to cover immediate liabilities. This is a key indicator of a "healthy cash flow," essential for meeting day-to-day expenses without distress.

• Capital Structure:
  The net assets (£29,091) show a positive net worth, meaning the company’s assets exceed liabilities, an important "good health" sign on its balance sheet. The company is not relying on excessive debt, reducing financial stress and risk.

• Business Scale and Activity:
  With only one employee (the director) and micro-entity status, the company is in a nascent phase. The lack of an audit requirement and use of micro-entity reporting standards reflect its small size. This means limited complexity but also potential vulnerability to market and operational risks due to scale.

• Operational Focus:
  Operating under SIC code 70229 (management consultancy other than financial management), the company specializes in advisory services, typically low capital intensity but reliant on the director’s expertise and client relationships.

• Governance and Control:
  The director, Mr. Paul Bernard Monahan, holds full control (75-100% shares and voting rights), ensuring clear decision-making lines but also concentration risk if the company’s success is heavily dependent on one individual.

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4. Recommendations: Actions to Improve Financial Wellness

1. Build Revenue Streams and Client Base:
   As a new consultancy, expanding the client portfolio will enhance income stability and reduce business risk.

2. Maintain Positive Working Capital:
   Continue monitoring receivables and payables to preserve healthy liquidity. Avoid overextending credit to clients.

3. Consider Diversification of Skills and Resources:
   Hiring or subcontracting additional consultants could reduce operational risk concentrated on the sole director and enable growth.

4. Regular Financial Review:
   Implement periodic financial health checks (quarterly if possible) to detect early symptoms of cash flow or profitability issues.

5. Plan for Scaling:
   As turnover grows, prepare for filing requirements beyond micro-entity status, including possible audits and more detailed accounts.

6. Risk Management:
   Develop contingency plans for potential business disruptions, especially given reliance on a single key person.

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