SEVENTYFIVE CONSULTING LTD

Executive Summary

SEVENTYFIVE CONSULTING LTD demonstrates a robust financial position for a micro-entity, characterized by strong liquidity and growing equity. The company’s financial health is stable with no signs of distress, though its small scale and concentrated governance pose some risks. Strategic focus on cash reserves, client diversification, and operational scalability will support sustainable future growth.

SEVENTYFIVE CONSULTING LTD - Analysis Report

Company Number: 14017017

Analysis Date: 2025-07-20 15:49 UTC

Financial Health Assessment for SEVENTYFIVE CONSULTING LTD

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1. Financial Health Score: B+

Explanation:
SEVENTYFIVE CONSULTING LTD exhibits solid financial footing for a micro-entity, with improving net assets and healthy working capital. The company’s financial "vital signs" indicate stable liquidity and positive net worth, though the small scale and limited fixed assets constrain its resilience against larger shocks. The absence of debt beyond short-term liabilities and consistent equity growth underpin a good but not top-tier rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	1,025	Very low, typical for a consultancy; minimal investment in long-term assets.
Current Assets	15,204	Healthy short-term resources, likely cash and receivables.
Current Liabilities	10,246	Manageable short-term obligations; no excessive short-term debts.
Net Current Assets	13,026	Strong positive working capital, indicating good liquidity ("healthy cash flow").
Total Assets Less Current Liabilities	14,051	Solid buffer above short-term debts, showing solvency.
Net Assets (Shareholders' Funds)	14,051	Positive equity trajectory from £9,645 in 2023 to £14,051 in 2024; indicates retained earnings or capital injections.
Average Employees	1	Very small workforce, limiting operational scale but controlling costs.

Additional observations:

• Prepayments and accrued income increased significantly (from £4,970 to £8,068), suggesting advance payments or deferred income recognition.
• No overdue filings; regulatory compliance is up-to-date.
• Single owner and director with full control, simplifying governance but concentrating risk.

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3. Diagnosis: Financial Condition and Business Health

The company’s financial "vitals" suggest a business in generally good health:

• Liquidity is strong. A net current asset position of £13,026 means the company has ample short-term assets to cover liabilities, a clear sign of healthy cash flow and operational stability. This is akin to a patient having a strong pulse and stable blood pressure.
• Solvency is sound. The positive net assets and growth from the previous year indicate the company is solvent and building equity, similar to a patient gaining strength after initial treatment.
• Asset base is minimal but appropriate. The low fixed asset base aligns with the management consultancy sector's low capital intensity. However, this also means the company is reliant on intangible assets such as client relationships and expertise — intangible "immune system" factors that need nurturing.
• Scale is limited. With only one employee and micro-entity status, the company may face growth constraints and vulnerability to single-person risks (e.g., illness or departure of the key individual).
• Governance concentration. The sole director and owner have full control, which simplifies decision-making but could be a risk if succession or oversight mechanisms are weak.

No symptoms of distress such as overdue liabilities, declining equity, or negative working capital are present. However, the company’s financial health is closely tied to its operational performance and market conditions in management consultancy.

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4. Recommendations for Financial Wellness Improvement

To enhance financial robustness and support growth, consider the following actions:

• Build cash reserves further: Maintain or increase working capital to buffer against unforeseen expenses or revenue fluctuations, ensuring a "healthy cash flow" reserve.
• Diversify revenue streams: To reduce dependency on a small client base or single consultant, explore expanding services or client portfolio.
• Formalize succession planning: Mitigate risks associated with single-person operation by training backups or considering partnerships.
• Invest selectively in intangible assets: Allocate resources to marketing, client relationships, and intellectual property development to strengthen competitive advantage.
• Maintain rigorous financial oversight: Continue timely filing and consider periodic financial reviews or forecasts to anticipate any emerging financial "symptoms" early.
• Evaluate debt cautiously: While current liabilities are manageable, avoid accumulating long-term debt without clear ROI to keep the balance sheet healthy.
• Explore growth opportunities: As the company gains stability, consider scaling up with additional staff or technology investments to enhance service delivery and revenue potential.

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