Company Number: 14409264

Analysis Date: 2025-07-20 13:20 UTC

Financial Health Assessment for Rachael Keeble Consultancy Limited

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1. Financial Health Score: D

Explanation:
The company exhibits signs of financial distress with net liabilities of £13,849 and negative working capital. While it is a micro-entity and relatively new (incorporated in October 2022), its balance sheet shows a critical imbalance between liabilities and assets, suggesting precarious financial health. The score D reflects a company facing significant financial challenges that need urgent attention.

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2. Key Vital Signs

Metric	Value	Interpretation
Fixed Assets	£1,200	Minimal long-term investment, typical for a consultancy.
Current Assets	£2,965	Limited liquid and short-term assets available.
Current Liabilities	£18,014	High short-term debts due within one year.
Net Current Assets (Working Capital)	(£15,049)	Negative working capital — symptoms of liquidity stress.
Net Assets (Total Equity)	(£13,849)	Net liabilities indicate the company owes more than it owns.
Employees	1 (Director)	Sole director-operated, keeping overhead low.
Account Category	Micro	Simplified filing but limited financial scale.

Interpretation:

• Negative Working Capital: The company’s current liabilities far exceed current assets, meaning it may struggle to meet short-term obligations.
• Net Liabilities: The company has more liabilities than assets, a symptom indicating erosion of shareholder equity and potential insolvency risk.
• Limited Assets: Fixed assets are minimal, appropriate for a consultancy but not providing collateral or long-term value buffer.
• Single Director: The business is controlled entirely by Ms. Rachael Keeble, simplifying governance but concentrating risk.

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3. Diagnosis

This company shows clear symptoms of financial distress, mainly due to negative net assets and working capital deficits. The imbalance between current liabilities and current assets suggests liquidity challenges—akin to a patient with low vital signs struggling to sustain normal functions. The absence of profitability data limits insight into operational cash flow, but the balance sheet indicates the company may be relying on external funding or deferring payments to cover costs.

Given its micro-entity status and recent incorporation, it may still be in a start-up phase, possibly incurring initial expenses before generating stable revenues. However, without improvement, the risk of insolvency or need for restructuring is significant.

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4. Recommendations

• Improve Cash Flow Management: Prioritize converting receivables and controlling payables to reduce negative working capital. Consider negotiating extended payment terms with creditors or securing short-term financing to bridge liquidity gaps.
• Increase Capital Injection: Consider injecting additional equity or capital from the owner or investors to restore net asset balance and provide a financial cushion.
• Revenue Growth Focus: Accelerate client acquisition and service delivery to generate positive cash flow. Review pricing and contract terms for better margin control.
• Cost Control: Maintain lean operations, especially as a single-person consultancy, to minimize overheads.
• Regular Monitoring: Implement monthly cash flow forecasts and financial reviews to detect early signs of stress and respond promptly.
• Professional Advice: Engage with a financial advisor or accountant to develop a turnaround plan and explore restructuring options if necessary.

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