RJ BISHOP CONSULTANCY LTD

Executive Summary

RJ BISHOP CONSULTANCY LTD exhibits strong financial health for a micro-entity, with improving liquidity and net assets, indicating effective management and operational stability. While the business maintains a solid financial baseline, expanding capital reserves and diversifying income sources will enhance resilience against external risks. Continued prudent cash flow management and planning will support sustainable growth and financial wellness.

RJ BISHOP CONSULTANCY LTD - Analysis Report

Company Number: 13134697

Analysis Date: 2025-07-20 12:12 UTC

Financial Health Assessment for RJ BISHOP CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
RJ BISHOP CONSULTANCY LTD shows a solid and improving financial position typical for a micro-entity, with healthy net current assets and net assets growth year-on-year. The company maintains positive working capital and shareholder funds, indicating financial stability and prudent cash management. However, the small scale and limited capital base constrain a higher grade, as micro businesses often face vulnerability to market or operational shocks.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Current Assets	40,599	Cash and short-term assets have doubled from 2023, indicating increased liquidity. Healthy cash reserves.
Current Liabilities	15,497	Slight increase but manageable vs current assets.
Net Current Assets (Working Capital)	25,102	Positive and growing working capital indicates good short-term financial health and ability to cover debts.
Net Assets / Shareholders Funds	25,102	Increased from £8,099 in 2023, showing retained earnings or capital infusion, strengthening equity.
Share Capital	1.00	Minimal capital invested; typical for micro entities, but signals reliance on internal funding or profits.
Average Number of Employees	1	Very small operational scale; low fixed overheads but limited capacity for growth.

Interpretation of Vital Signs:

• Healthy cash flow analogy: The company’s "circulatory system" (liquidity) is strong, with enough "blood" (current assets) flowing to meet short-term obligations (liabilities).
• Symptom of growth: The increase in net assets and working capital suggests the business is strengthening its "immune system," building reserves to withstand future challenges.

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3. Diagnosis: Overall Financial Condition Assessment

RJ BISHOP CONSULTANCY LTD is in a financially stable and improving condition, especially given its micro-entity status. The net assets have more than tripled from 2023 to 2024, which is a very positive symptom indicating the business is accumulating value rather than eroding capital. Current assets comfortably cover liabilities, showing no immediate liquidity distress.

The company operates with minimal employees and low share capital, which is typical for this size and category. Its financial health suggests effective management of operational cash and liabilities, but as a micro business, it remains sensitive to external shocks such as loss of key contracts or economic downturns.

There are no alarming symptoms such as negative working capital, increasing debt burdens, or shrinking equity. The absence of audit requirements and simplified accounts are consistent with the micro-entity regime, but also mean less financial detail is available for risk assessment.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Build Capital Reserves: Consider increasing the share capital or retaining more earnings to strengthen the equity base, reducing reliance on operational cash flow alone.
• Diversify Revenue Streams: Expand customer base or services to reduce risk associated with small scale and single client dependency; diversify to improve resilience.
• Cash Flow Monitoring: Continue close monitoring of cash inflows and outflows to maintain healthy liquidity and avoid any symptoms of cash strain.
• Financial Planning: Develop a simple but robust financial plan and budget to anticipate potential future expenses or investments, ensuring the "heart" of the business keeps pumping smoothly.
• Consider Growth Investment: Explore opportunities for small investments in technology or marketing to scale operations modestly, increasing income without overextending liabilities.
• Maintain Compliance: Timely filing of accounts and returns, as currently observed, to avoid penalties and maintain good standing with regulatory bodies.

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