ROBIN DAVIES CONSULTING LIMITED

Executive Summary

ROBIN DAVIES CONSULTING LIMITED shows healthy initial financial indicators typical of a micro-entity startup, with positive liquidity and solid equity. While the company is financially stable at this early stage, ongoing attention to cash flow management and growth planning will be crucial to ensure sustained financial wellness as the business expands. The current financial "vital signs" are promising, supporting a positive outlook if prudent financial management continues.

ROBIN DAVIES CONSULTING LIMITED - Analysis Report

Company Number: 14863453

Analysis Date: 2025-07-20 17:38 UTC

Financial Health Assessment of ROBIN DAVIES CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
ROBIN DAVIES CONSULTING LIMITED demonstrates a solid foundation typical of a newly incorporated micro-entity. The company shows positive net current assets and net assets, indicating a healthy liquidity position and positive equity. However, given its infancy (incorporated May 2023) and modest scale, the financial footprint is small, which limits robustness against shocks. The score "B" reflects good initial health but room to strengthen operational cash flow and asset base as the business grows.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,336	Small investment in long-term assets, appropriate for startup phase.
Current Assets	5,614	Includes cash and receivables; healthy short-term resources.
Current Liabilities	4,393	Short-term debts/liabilities; relatively low but notable.
Net Current Assets	1,314	Positive working capital; "healthy cash flow cushion."
Total Assets Less Current Liabilities	2,650	Indicates net resources after settling short-term debts.
Net Assets / Shareholders' Funds	2,650	Positive equity; indicates solvency and owner investment.
Employee Count	2	Small team; typical for micro companies, manageable overhead.

Additional observations:

• The company is classified as a Micro entity with simplified filing, suitable for its size and turnover.
• No audit was needed, reflecting compliance with micro-entity regulations.
• Director Robin Davies holds 75-100% ownership and control, centralizing decision-making and accountability.
• The company advanced funds to the director during the year, which were repaid by January 2025, indicating good internal financial discipline.

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3. Diagnosis: What the Numbers Reveal About Business Health

ROBIN DAVIES CONSULTING LIMITED's financials reveal the "vital signs" of a stable newborn business:

• Positive net current assets suggest the company can comfortably meet its short-term obligations, an encouraging sign of liquidity.
• Net assets and shareholders' funds are positive, indicating the company’s financial "heart" is strong with net resources exceeding liabilities.
• The small fixed asset base aligns with the business model of management consultancy, which is service-oriented and less capital-intensive.
• The company's cash flow appears healthy, evidenced by the ability to extend and recover director advances without distress.
• Two employees imply tightly controlled overheads but may represent a capacity limit for scaling without additional hires.
• The company benefits from centralized ownership and control, which aids swift decision-making but also concentrates risk.

Potential symptoms to monitor:

• As a new entity, the company lacks a track record of profitability or revenue growth data, so future cash generation remains untested.
• The small scale and limited asset base may constrain the ability to absorb unexpected expenses or invest in growth.
• Reliance on a single director-owner may pose governance and continuity risks.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Build a Cash Reserve:
   Aim to increase net current assets to strengthen liquidity further, providing a buffer against unforeseen expenses or delayed client payments.

2. Monitor Cash Flow Closely:
   Develop regular cash flow forecasts to anticipate funding needs, especially as the business scales beyond micro size.

3. Diversify Client Base and Revenue Streams:
   To reduce concentration risk and stabilize income, pursue a broader range of consultancy clients.

4. Consider Formal Financial Controls:
   As the company grows, segregate duties and introduce internal financial controls to complement the single director structure.

5. Plan for Growth Investment:
   Evaluate whether incremental investment in fixed assets or hiring is necessary to support business expansion while maintaining financial health.

6. Maintain Compliance and Timely Filings:
   Continue adhering to filing deadlines and regulatory requirements to avoid penalties or reputational damage.

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