Company Number: 13139905

Analysis Date: 2025-07-20 16:29 UTC

Financial Health Assessment for SALAMAT CONSULTANCY LIMITED

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1. Financial Health Score: A-

Explanation:
SALAMAT CONSULTANCY LIMITED exhibits a strong and improving financial position with healthy liquidity, positive net assets, and increasing shareholders' funds. The company’s financial "vital signs" suggest robust financial wellness for a micro-entity, though its small scale and limited asset base slightly temper the score.

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2. Key Vital Signs

Metric	2023 Value (£)	Interpretation
Fixed Assets	6,337	Small but growing long-term asset base indicates modest investment in business infrastructure.
Current Assets	124,214	Healthy level of liquid assets (cash, receivables) showing strong ability to meet short-term needs.
Current Liabilities	13,745	Low level of short-term debt relative to current assets, pointing to good working capital management.
Net Current Assets	118,569	Substantial positive working capital — a sign of financial "breathing room" and operational liquidity.
Net Assets (Shareholders' Funds)	124,006	Positive and increasing equity base reflects accumulated profitability and retained earnings.
Share Capital	100	Nominal share capital consistent with typical micro-entity structure.
Employee Count	1	Sole director/employee model; low overhead but potential risk if key person unavailable.

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3. Diagnosis

SALAMAT CONSULTANCY LIMITED is in a healthy financial state, akin to a patient with stable vital signs and no symptoms of distress. The company has shown a significant increase in current assets (from £66,602 in 2022 to £124,214 in 2023) and net assets (from £68,984 to £124,006), indicating improved cash inflows and profitability or retained earnings growth.

Its working capital is robust, meaning the business can comfortably cover its short-term obligations without liquidity strain. The increase in fixed assets, while modest, suggests some reinvestment in the business, potentially improving capacity or efficiency.

The company’s micro-entity size and sole directorship mean it operates with low complexity but also limited diversification of leadership and resources — a potential vulnerability if key personnel face disruption.

No signs of distress such as overdue filings, excessive liabilities, or negative net assets are present. The company's compliance with filing deadlines and absence of audit requirements (due to micro-entity status) further support its operational smoothness.

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4. Recommendations

To maintain and enhance financial wellness, SALAMAT CONSULTANCY LIMITED should consider the following:

• Cash Flow Management: Continue to monitor cash inflows and outflows carefully to sustain the healthy liquidity position. Avoid tying up too much capital in receivables or stock.

• Diversify Revenue Streams: As a sole consultant, consider expanding client base or services to reduce dependency on a limited income source, improving financial resilience.

• Build Contingency Reserves: Allocate part of profits to contingency funds to prepare for unexpected expenses or economic downturns, enhancing financial robustness.

• Succession Planning: Develop contingency plans for key person risk given the single director/employee structure, ensuring business continuity.

• Asset Utilisation: Evaluate the efficiency of current assets and fixed assets to ensure they contribute positively to profitability and growth.

• Regular Financial Review: Maintain frequent financial health checks beyond annual accounts to detect early symptoms of any distress and enable proactive management.

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