PROPOSAL MANAGER LTD

Executive Summary

Proposal Manager Ltd shows encouraging signs of financial recovery with improved net assets and positive working capital after previous liquidity challenges. The company operates leanly, typical for its industry, but should focus on strengthening liquidity and profitability transparency to ensure sustainable growth. Maintaining disciplined financial management will be key to advancing from a fragile to a robust financial position.

PROPOSAL MANAGER LTD - Analysis Report

Company Number: SC663160

Analysis Date: 2025-07-29 13:15 UTC

Financial Health Assessment of Proposal Manager Ltd

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1. Financial Health Score: B-

Explanation:
Proposal Manager Ltd shows signs of improving financial health with a positive net asset position (£4,055 as of 28 February 2025) from near insolvency (£1 net asset in 2024). However, the company operates with very low fixed assets and modest net current assets, typical for a micro entity in consultancy. The limited scale and volatile net current assets in prior years suggest a fragile but recovering financial condition. The absence of profit and loss details limits insight into profitability, which tempers the score.

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2. Key Vital Signs

Metric	2025 Value	Interpretation
Net Assets	£4,055	Positive net assets indicate the company’s equity exceeds liabilities, a healthy sign of balance sheet strength.
Net Current Assets	£3,099	Positive working capital shows the company can cover short-term obligations, reflecting healthy operational liquidity.
Fixed Assets	£966	Very low fixed assets suggest minimal capital investment, typical for a service business but may indicate limited growth assets.
Current Liabilities	£10,964	Current liabilities are significant relative to assets; careful management of payables is necessary to avoid liquidity stress.
Share Capital	£1	Minimal share capital is common in micro private companies but implies reliance on retained earnings or loans for funding.
Account Category	Micro	Small scale operations with simplified reporting; financials less detailed but adequate for this size.
Filing Status	Up to date	No overdue accounts or confirmation statements, indicating compliance with statutory requirements.

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3. Diagnosis

Proposal Manager Ltd presents the symptoms of a small but recovering business. The company struggled with negative net current assets in the previous financial year, indicating short-term liquidity stress ("symptoms of distress"). The current year shows a significant improvement in net current assets and net assets, suggesting a "healthy cash flow" and better management of receivables and payables.

The low fixed asset base is consistent with the company's industry (management consultancy and IT services) which typically relies on intellectual capital rather than physical assets. The small share capital and reliance on accumulated funds for equity indicate a lean capital structure but also potential vulnerability to external shocks.

Overall, the financial "vital signs" suggest a stable but cautious outlook. The company is not over-leveraged and shows an improving balance sheet, but the narrow asset base and current liabilities require continued prudent management.

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4. Recommendations

To improve financial wellness and strengthen resilience, Proposal Manager Ltd should consider the following actions:

• Strengthen Liquidity Management: Maintain tight control over receivables and payables to sustain positive working capital and avoid liquidity crunches.
• Build Profitability Transparency: Prepare and monitor detailed profit and loss accounts internally to identify and address profitability issues early, even if not filed publicly.
• Increase Capital Buffer: Explore opportunities to increase equity capital or retain earnings to provide a larger cushion against unexpected expenses or downturns.
• Plan Asset Investments: Although service businesses need few fixed assets, consider investments in technology or intellectual property that could enhance competitive advantage.
• Regular Financial Monitoring: Continue timely filing and compliance to avoid penalties and maintain stakeholder confidence.
• Scenario Planning: Develop contingency plans for cash flow disruptions, given the company’s small size and limited asset base.

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