Company Number: 15029892

Analysis Date: 2025-07-29 13:44 UTC

Financial Health Assessment Report
Company: Scott Selbie Consulting Limited
Assessment Date: 2024-02-06 (date of accounts signature)
Financial Year End: 31 July 2024

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1. Financial Health Score: D

Explanation:
Scott Selbie Consulting Limited is a micro-entity with a very recent incorporation date (July 2023). The financials indicate a marginally negative net asset position (£-558) and net current liabilities, suggesting the company is operating with a slight working capital deficit. Given the company's infancy and micro size, this score reflects early-stage challenges and the need for close monitoring and financial strengthening.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	67,810	Indicates available short-term resources
Current Liabilities	68,368	Obligations due within one year
Net Current Assets	-558	Slightly negative working capital (liabilities exceed assets)
Net Assets (Shareholders' Funds)	-558	Equity is negative, indicating liabilities exceed assets
Average Number of Employees	2	Small team, consistent with micro entity

• Negative Net Current Assets: A key "symptom" of cash flow pressure or tight liquidity, meaning the company owes slightly more than it owns in current assets.
• Negative Net Assets: A potential early warning sign but not uncommon for a new company still investing in set up and initial operations.
• No audit requirement: Indicates the company qualifies under micro-entity thresholds, which simplifies compliance but also means less detailed external scrutiny.

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3. Diagnosis

The company is in the very early stages of its lifecycle, having been incorporated just over a year ago. The slight working capital deficit and negative net asset position are typical "symptoms" for a start-up or micro-entity in its first year of trading, where initial expenditures may not yet be fully matched by income.

• Financial Condition: Early-stage with minor financial strain on liquidity.
• Cash Flow Health: Cash resources are close to current liabilities, indicating limited buffer or "healthy cash flow" cushion.
• Operational Scale: Very small, with two employees including directors.
• Governance and Control: Directors and significant shareholders are the same individuals, indicating close management control.

Overall, the company shows signs of early development but needs to improve its net asset position and liquidity over time to ensure sustainable operations.

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4. Recommendations

To improve financial wellness and transition from symptoms of distress to a healthier financial state, the company should consider:

1. Strengthen Working Capital:

   • Monitor and manage payables and receivables carefully to avoid liquidity crunches.
   • Explore options to increase cash reserves, e.g., through shareholder loans or capital injection.

2. Increase Revenue Generation:

   • Focus on developing client base and increasing consultancy engagements to boost turnover.

3. Cost Control:

   • Scrutinize operational expenses to reduce unnecessary costs without hampering growth.

4. Regular Financial Monitoring:

   • Implement monthly cash flow forecasts and variance analysis to detect early signs of distress.
   • Consider future audit or review as company grows to enhance financial discipline.

5. Plan for Growth:

   • As a micro entity, careful planning for scaling up operations and transitioning to small/medium status with adequate resources is key.

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