PHILLIP ASH CONSULTING LIMITED

Executive Summary

PHILLIP ASH CONSULTING LIMITED demonstrates strong profitability and a lean operational model in its first year, reflecting a healthy financial start. However, the absence of current assets signals a need to build cash reserves to enhance liquidity and prepare for future growth. With prudent financial management and careful scaling, the company is well-positioned for sustainable success.

PHILLIP ASH CONSULTING LIMITED - Analysis Report

Company Number: 15255035

Analysis Date: 2025-07-29 16:05 UTC

Financial Health Assessment: PHILLIP ASH CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
As a newly incorporated micro-entity (since November 2023), PHILLIP ASH CONSULTING LIMITED shows strong early signs of financial vitality with a solid profit margin and low overheads. However, the absence of current assets such as cash reserves or receivables presents a minor caution, limiting liquidity flexibility. Overall, the company exhibits a "healthy pulse" typical for a start-up in its first financial year but should build a stronger cash position to ensure sustainable growth.

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2. Key Vital Signs

Metric	Value	Interpretation
Turnover	£187,467	Reasonable revenue generation for first 13 months of trading.
Profit for the Period	£171,605	Strong profitability indicates efficient cost control and demand.
Staff Costs	£5,306	Low employee expenses consistent with 1 employee; lean operation.
Fixed Assets	£1,000	Minimal investment in long-term assets; typical for a consultancy.
Current Assets	£0	No cash or receivables recorded — potential liquidity concern.
Current Liabilities	£0	No short-term debts; low financial risk in immediate term.
Net Assets	£1,000	Positive equity, reflecting ownership investment and retained earnings.
Number of Employees	1	Single-person operation, indicating owner-managed structure.

Interpretation:

• Strong Profitability ("healthy heart rate"): The company generated a large profit margin (~91%), showing effective management and market demand.
• Liquidity "symptom" absence: Zero current assets imply no cash buffer or outstanding payments due, which is unusual but not critical for a first-year micro business if the owner is financing operations directly.
• Low operational overheads keep the company in good shape but may limit scalability unless investment increases.

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3. Diagnosis

PHILLIP ASH CONSULTING LIMITED is in the early stages of its financial lifecycle with a robust profit figure relative to sales, signaling good "metabolic health." The balance sheet is very light, with minimal fixed assets and no current assets or liabilities, reflecting a lean structure possibly reliant on owner’s working capital or rapid cash turnover.

The lack of current assets (cash or receivables) is a "symptom" that warrants monitoring. It may indicate that the company operates on a cash basis without credit sales or has yet to accumulate working capital reserves. This situation is manageable at this stage but could become a liquidity risk as the business grows or if expenses increase unexpectedly.

Overall, the company shows no "signs of distress" such as debt burden or operational losses, but it is still too early to assess long-term sustainability. The financial "vital signs" suggest a stable condition but with limited resilience to shocks without building liquidity.

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4. Recommendations

To improve financial wellness and prepare for sustainable growth, the following actions are advised:

• Build Cash Reserves: Establish a healthy cash buffer to cover at least 3-6 months of operating expenses. This will provide resilience against unexpected costs or revenue fluctuations.
• Monitor Working Capital: Although current liabilities are zero, the company should track any short-term obligations or delayed client payments to avoid cash flow strain.
• Consider Asset Investment: Evaluate whether investing in essential fixed assets or technology could improve operational efficiency or service delivery.
• Plan for Growth: As a single-person consultancy, assess the need for additional staff or subcontractors carefully, ensuring that revenue growth supports increased expenses.
• Maintain Accurate Financial Records: Continue timely filings and keep comprehensive accounting records to support decision-making and compliance.
• Explore Financing Options: If expansion is planned, consider small business loans or owner investment to fund growth without compromising liquidity.

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