REM CONSULTING LTD

Executive Summary

REM CONSULTING LTD exhibits a strong financial position with robust liquidity, positive working capital, and growing net assets, reflecting sound operational health. The company has effectively reduced its short-term liabilities and invested in tangible assets, signaling growth, though monitoring cash flow trends is advisable to maintain financial stamina. Overall, the business demonstrates good financial wellness with opportunities for strategic expansion.

REM CONSULTING LTD - Analysis Report

Company Number: 13639116

Analysis Date: 2025-07-29 14:34 UTC

Financial Health Assessment of REM CONSULTING LTD as of 30 September 2024

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1. Financial Health Score: B+

Explanation:
REM CONSULTING LTD shows a solid financial position with healthy liquidity and growing net assets, indicative of stable and improving business health. The company’s strong cash reserves and positive working capital highlight robust operational cash flow, akin to a patient with a strong heartbeat and clear breathing. However, the slight reduction in cash and current assets compared to the previous year signals a mild symptom of cash outflow or investment, requiring monitoring to ensure ongoing financial stamina.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	187,209	Adequate short-term resources available; slight decrease from £219,729 in 2023.
Cash and Cash Equivalents	174,609	Strong liquidity cushion; vital for day-to-day survival.
Debtors	12,600	Stable receivables, manageable credit risk.
Current Liabilities	20,376	Low short-term obligations; improvement from £44,708 in 2023 indicates reduced short-term stress.
Net Current Assets (Working Capital)	166,833	Positive and healthy working capital, indicating good short-term financial fitness.
Net Assets (Equity)	212,109	Growing shareholder equity, reflecting retained earnings and asset value improvement.
Fixed Assets	45,276	Increased investment in tangible assets, sign of growth or modernization.
Employee Count	2	Small team size consistent with IT consultancy micro/small business norms.

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3. Diagnosis

• Liquidity & Cash Flow: The company maintains a "healthy pulse" in terms of liquidity, with a substantial cash balance (£174,609) and a positive working capital position (£166,833). This suggests the business has no immediate cash flow distress and can comfortably cover short-term liabilities.

• Balance Sheet Strength: Net assets have increased from £199,357 in 2023 to £212,109 in 2024, implying the company is accumulating value and profits over time. This is a positive sign of financial resilience and growth.

• Asset Management: The notable increase in fixed assets (£45,276 vs £24,336 in 2023) indicates recent capital expenditure, likely investing in equipment or vehicles to support business operations. This is a good sign of reinvestment but should be monitored to ensure it does not overly strain cash reserves.

• Liabilities: The sharp reduction in current liabilities from £44,708 to £20,376 shows improved creditor management and reduced short-term financial pressure, akin to reducing symptoms of congestion or blockage in the financial arteries.

• Profitability: While explicit profit figures are not provided, the increase in retained earnings (profit and loss reserve) from £199,356 to £212,108 suggests the company generated net profits or retained earnings during the year, signaling operational health.

• Ownership & Control: The company is tightly controlled, with one director and a holding company owning 75-100% of shares and voting rights. This centralized control can enable swift decision-making but also concentrates risk.

• Compliance: All filings (accounts and confirmation statements) are up to date with no overdue filings or penalties, indicating good governance and regulatory compliance.

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4. Recommendations

• Monitor Cash Flow Trends: The reduction in cash reserves by ~£32,520 year-on-year should be watched closely. Ensure capital expenditures are aligned with budgeted cash flow, and consider maintaining a buffer for unexpected expenses.

• Leverage Asset Investments: The increased fixed assets should be effectively deployed to generate additional revenue streams or operational efficiencies. Track return on these investments to ensure they contribute positively to profitability.

• Maintain Working Capital Discipline: Continue managing receivables and payables tightly to avoid liquidity strains. The current low debtor level and reduced liabilities are positive; sustaining this balance is crucial.

• Plan for Growth: With strong equity and liquidity, the company may consider strategic growth initiatives such as expanding service offerings, investing in marketing, or hiring additional skilled staff to increase capacity.

• Regular Financial Reviews: Conduct periodic financial health checks (quarterly or semi-annually) to detect early signs of distress, such as declining liquidity or increasing liabilities.

• Risk Management: Given the concentrated ownership, consider implementing internal controls or governance measures to mitigate risks associated with single-person decision-making.

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Medical Analogy Summary

REM CONSULTING LTD currently presents with a "healthy financial heartbeat" and "strong liquidity lungs," enabling it to breathe easily through operations and short-term obligations. The company shows "signs of growth" with increased asset investment and equity accumulation, but the "slight dip in cash reserves" is a mild symptom requiring vigilance to ensure it does not develop into financial fatigue.

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