RICHARD KOOIJMAN CONSULTANCY LTD

Executive Summary

Richard Kooijman Consultancy Ltd demonstrates solid financial health with strong liquidity and growing equity, typical of a small-scale consultancy. While the company shows no signs of financial distress, opportunities exist to enhance asset investment and client diversification to secure future growth and stability. Maintaining compliance and considering an external financial review will further strengthen its financial wellness.

RICHARD KOOIJMAN CONSULTANCY LTD - Analysis Report

Company Number: 12462245

Analysis Date: 2025-07-29 20:22 UTC

Financial Health Assessment for Richard Kooijman Consultancy Ltd

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1. Financial Health Score: B

Explanation:
The company shows strong financial fundamentals typical of a micro-entity consultancy with steady growth in net current assets and shareholders' funds over the past five years. The working capital position is healthy, indicating good short-term liquidity. However, the scale remains small, and fixed assets are minimal, which is normal but limits tangible asset backing. The absence of audit and limited complexity in accounts reduces risk but also limits transparency. Overall, the company demonstrates stable and improving financial health but has room for improvement to achieve an "A" grade.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£150	Negligible, typical for consultancy; low capital investment.
Current Assets	£28,457	Healthy cash and receivables base, more than doubled in recent years.
Current Liabilities	£13,375	Manageable short-term obligations, increased but proportionate.
Net Current Assets (Working Capital)	£15,082	Positive working capital, indicating ability to cover short-term debts comfortably.
Shareholders’ Funds (Equity)	£15,232	Growing equity base signifies retained profits and financial stability.
Account Category	Micro	Simplified reporting, smaller scale business typical of consultancy.
Employee Count	1 (average)	Low overheads, likely owner-operated or very small team.

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3. Diagnosis: What the Financial Data Reveals About Business Health

• Healthy Cash Flow & Liquidity: The increase in current assets and net current assets from £4,982 in 2023 to £15,082 in 2024 suggests strong cash generation or improved receivables management. The company has a solid buffer to meet short-term liabilities, an important "vital sign" for survival and operational health.

• Stable Capital Structure: Shareholders’ funds have grown over five years from £2,336 in 2021 to £15,232 in 2024. This shows the business is retaining earnings or injecting capital, reinforcing a stable capital foundation with no indication of financial distress.

• Asset Base: Fixed assets remain minimal (£150), which is not uncommon for service-based consultancies that rely more on intellectual capital than physical assets. This means the company’s value is largely intangible, dependent on reputation and human capital.

• Scale & Growth: The company remains small with a single employee and micro-entity status, limiting economies of scale but also keeping cost base low. The steady growth in working capital and equity suggests cautious but positive growth.

• Risk Factors:

  • No audit requirement reduces administrative burden but might limit external verification of accounts.
  • Small scale means vulnerability to client concentration or market changes.
  • No indication of overdue filings or compliance issues, which is a positive sign for governance.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Cash Management: Although cash and receivables are strong, continue monitoring debtor days to avoid cash flow bottlenecks. Consider short-term investment of excess cash to maximize returns without sacrificing liquidity.

• Build Asset Base Strategically: While fixed assets are minimal, investing modestly in technology or software that improves consultancy efficiency could strengthen operational capability.

• Expand Service Offering or Client Base: Growth could be supported by diversifying clients or service lines to reduce dependency risk and increase revenue stability.

• Formal Financial Reporting: As the company grows, consider voluntary audit or external review to strengthen stakeholder confidence and detect issues early.

• Plan for Succession or Growth Staffing: With only one employee, risk of operational disruption is high. Planning for additional staff or succession will improve business continuity.

• Maintain Compliance Vigilance: Ensure timely filing of accounts and confirmation statements to avoid penalties and reputational damage.

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Medical Analogy Summary

Richard Kooijman Consultancy Ltd displays the financial "vital signs" of a stable, well-nourished patient: a strong pulse of liquidity, a robust equity "immune system," and no evident symptoms of financial distress. The company’s "financial metabolism" is efficient, steadily building reserves with minimal liabilities. To maintain and improve this healthy state, it should nurture its asset base and diversify its "nutritional intake" by expanding client reach or service offerings, preventing future "illness" due to over-reliance or market shocks.

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