QONEX CONSULTING LTD

Executive Summary

QONEX CONSULTING LTD exhibits a sound financial position with strong liquidity and positive working capital, indicating overall financial health. However, the company should focus on managing current liabilities carefully and enhancing revenue reporting to foster sustainable growth. With prudent financial management and strategic reinvestment, the outlook remains stable and positive.

QONEX CONSULTING LTD - Analysis Report

Company Number: 13585475

Analysis Date: 2025-07-20 15:50 UTC

Financial Health Assessment Report for QONEX CONSULTING LTD

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1. Financial Health Score: B

Explanation:
QONEX CONSULTING LTD demonstrates solid financial stability with a healthy level of net current assets and consistent shareholder equity over the last three years. However, modest growth and near-static asset levels, combined with a relatively high current liabilities balance primarily composed of taxation and social security, indicate some caution is warranted. Overall, the company is financially sound but could benefit from improved operational cash flow management and liability reduction.

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2. Key Vital Signs

Vital Sign	Latest Value (2024)	Interpretation
Current Assets	£113,006	Indicates sufficient short-term assets, mainly cash.
Cash on Hand	£112,906	Very strong cash position, providing liquidity buffer.
Current Liabilities	£32,356	Obligations due within one year; mainly tax and creditors.
Net Current Assets	£80,650	Positive working capital, suggests ability to cover short-term debts.
Shareholders Funds (Equity)	£80,650	Reflects net worth; stable but slightly declining from prior year.
Employee Count	2	Small scale operation, likely micro/small company scale.
Account Category	Total Exemption Full	Filing under small company regime; limited disclosure.
Turnover	Not explicitly stated	Unable to assess revenue growth or profitability.

Interpretation of Vital Signs:

• The company enjoys a "healthy cash flow" equivalent, as cash holdings nearly match current assets, minimizing liquidity risk.
• Current liabilities, notably taxation and social security, are a "symptom of operational obligations" that require careful management to avoid cash strain.
• Stable but slightly declining net current assets and equity over recent years may indicate minimal reinvestment or profit retention, a "sign of plateauing growth."
• The very small debtor amount (£100) shows efficient receivables or minimal credit extended, which supports liquidity.

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3. Diagnosis

Financial Condition:
QONEX CONSULTING LTD is in a financially stable condition with strong liquidity ("healthy pulse of cash reserves") and positive working capital. The company’s balance sheet shows no fixed assets, which is typical for an IT consultancy operating with low capital expenditure. The equity base is solid but has marginally decreased, indicating either small losses or dividend distribution.

Underlying Business Health:

• The small scale and low employee count suggest a lean operational model, which minimizes overheads.
• The primary concern is the relatively high current liabilities compared to cash, which are mostly tax-related. This is manageable but requires diligent cash flow planning to ensure timely payments and avoid penalties.
• The lack of reported turnover or profit figures limits assessment of profitability and growth momentum, which would be key indicators to evaluate future sustainability.
• The company’s continued exemption from audit and small company reporting implies limited complexity but also less transparency, which could mask operational issues if not monitored.

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4. Recommendations

To improve financial wellness and ensure long-term vitality, QONEX CONSULTING LTD should consider the following actions:

1. Enhance Revenue Tracking and Reporting

   • Implement or improve internal reporting to capture turnover and profitability trends. This "monitoring of vital signs" will help detect early symptoms of business stress or growth opportunities.

2. Manage Current Liabilities Proactively

   • Develop a cash flow forecast focused on tax and social security payments to avoid surprises, ensuring these liabilities do not become a "symptom of distress."

3. Explore Profit Retention and Reinvestment

   • If profits exist, consider reinvesting in strategic areas such as staff development, technology, or marketing to stimulate growth, enhancing the “financial immune system.”

4. Consider a Formal Audit or Review

   • While small company exemptions apply, a periodic external review can provide assurance and identify hidden risks or inefficiencies.

5. Maintain a Strong Cash Buffer

   • Continue the practice of holding ample cash reserves; this "healthy cash flow" is a strong defensive position against unforeseen downturns.

6. Growth Strategy Development

   • With stable financial footing, evaluate market opportunities for expansion or diversification to avoid stagnation and improve shareholder value.

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