SC CONSULTING SERVICES LTD

Executive Summary

SC CONSULTING SERVICES LTD shows a stable and positive financial footing typical of a recently incorporated micro consulting firm, with healthy liquidity and equity buffers. While the company currently operates with low risk and manageable obligations, building a consistent profit record and planning for future growth will be critical to maintaining long-term financial wellness. Continued focus on cash flow management and governance will support sustainable development.

SC CONSULTING SERVICES LTD - Analysis Report

Company Number: 15169968

Analysis Date: 2025-07-20 19:16 UTC

Financial Health Assessment Report: SC CONSULTING SERVICES LTD

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1. Financial Health Score: B

Explanation:
SC CONSULTING SERVICES LTD, a micro-entity incorporated in late 2023, demonstrates a stable and positive financial position for its initial operating period. The positive net current assets and shareholders' funds indicate a healthy cash buffer and equity base for a start-up. However, as a newly formed company with a short trading history and limited scale, there remains uncertainty about future cash flows and profitability, preventing a top-tier rating.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	9,272	Reflects available short-term resources (cash, receivables). Healthy for a micro-entity.
Current Liabilities	5,835	Short-term obligations due within one year. Manageable given asset base.
Net Current Assets (Working Capital)	3,437	Positive working capital indicates ability to cover short-term debts comfortably.
Net Assets (Equity)	3,437	Total equity owned by shareholders; positive and aligned with net current assets.
Average Employees	1	Small workforce consistent with micro company status.

Additional Notes:

• The company has no fixed assets, which is typical for early-stage consulting businesses relying on intellectual capital rather than physical assets.
• The company is exempt from audit due to its micro-entity status, reflecting limited complexity and scale.
• No overdue filings or compliance issues detected, indicating good governance and adherence to statutory deadlines.

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3. Diagnosis: Financial Condition Analysis

"Healthy cash flow reserves and lean operation"
SC CONSULTING SERVICES LTD is in an early "incubation" phase, showing signs of financial stability. The positive net current assets suggest the company holds a comfortable short-term liquidity position, which is crucial for meeting immediate obligations without distress. The modest but positive equity reflects initial capital injection by the sole shareholder and director, who exercises full control.

"Symptoms of a start-up with low risk exposure"
There are no indications of financial distress such as negative working capital, excessive liabilities, or equity depletion. The single director/shareholder structure allows streamlined decision-making but also concentrates control risk. The lack of historical profit and loss data is typical given the company's recent incorporation; thus, operational profitability remains untested.

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4. Recommendations: Steps to Enhance Financial Wellness

1. Maintain Strong Cash Flow Management:
   Continue monitoring cash inflows and outflows carefully to build a sustainable revenue base and avoid liquidity strain as business activities grow.

2. Develop a Profit & Loss Track Record:
   Prepare internal management accounts to track income, expenses, and profitability regularly. This will aid in strategic planning and attract potential investors or lenders.

3. Plan for Growth and Capital Needs:
   As consulting activities expand, consider whether additional working capital or investment will be required. Early planning for financing options (e.g., loans, equity investment) will safeguard against cash shortages.

4. Strengthen Governance Practices:
   Even as a micro-entity, maintain robust records and compliance with Companies House deadlines. This supports credibility with clients and stakeholders.

5. Consider Risk Diversification:
   Explore opportunities to diversify client base or service offerings to reduce dependency on single revenue streams and mitigate business risk.

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