SHERI BUILDING CONSULTANCY LTD

Executive Summary

Sheri Building Consultancy Ltd demonstrates strong financial health with growing assets, solid liquidity, and positive equity trends, reflecting a stable and well-managed business. The company’s robust working capital and increased investment in fixed assets suggest readiness for sustainable growth. Maintaining liquidity and strategic reinvestment are key to continuing this positive trajectory.

SHERI BUILDING CONSULTANCY LTD - Analysis Report

Company Number: 12953376

Analysis Date: 2025-07-29 14:35 UTC

Financial Health Assessment for SHERI BUILDING CONSULTANCY LTD

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1. Financial Health Score: A-

Explanation:
Sheri Building Consultancy Ltd exhibits strong financial health for a micro-entity. It has steadily grown its net assets and working capital over the past four years, reflecting a stable and improving financial position. The company’s liquidity and solvency indicators are robust, suggesting a "healthy cash flow" and good operational control. The A- rating acknowledges this strength while noting the relatively small scale and micro-entity filing status, which naturally limits complexity and risk exposure.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£51,765	Increased significantly, indicating investment in long-term resources, possibly equipment or technology.
Current Assets	£470,218	Strong liquidity position; cash, debtors, or stock available to cover short-term obligations.
Current Liabilities	£122,338	Reasonable short-term debts; manageable relative to assets.
Net Current Assets (Working Capital)	£347,880	Healthy buffer; company can comfortably meet short-term liabilities.
Total Assets Less Current Liabilities	£399,645	Solid asset base after covering short-term debts.
Shareholders’ Funds (Equity)	£399,645	Positive net worth increasing year on year, showing retained earnings and capital growth.
Account Category	Micro	Small scale but compliant with filing; less complex financials.
Average Employees	2	Lean operation, low overheads, focusing on consultancy.

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3. Diagnosis: Financial Health Overview

Sheri Building Consultancy Ltd presents symptoms of financial wellness akin to a patient with a stable heart rate and good blood pressure — signs of steady and controlled business management. The company has progressively increased its asset base and equity from £105,699 in 2020 to £399,645 in 2023, demonstrating consistent profitability and prudent reinvestment. The growth in fixed assets from £1,743 to £51,765 suggests strategic investment in the business infrastructure, likely enhancing service capability.

The working capital is robust, with current assets nearly four times current liabilities, indicating excellent liquidity and no immediate risk of cash flow distress. The company’s micro-entity status means filing requirements are limited, but the consistent filing and absence of overdue returns signal good compliance and management discipline.

No signs of financial distress or risk factors such as negative equity, excessive debt, or liquidity crunches are evident. The lack of audit requirements suits the company size but places emphasis on internal controls and management accuracy.

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4. Recommendations: Steps to Enhance Financial Wellness

• Maintain Liquidity Discipline: Continue monitoring working capital closely to sustain the healthy cash flow and meet obligations without stress.
• Asset Utilization Review: Evaluate the returns on the increased fixed asset investments to ensure they contribute positively to profitability and efficiency.
• Profit Retention Strategy: Consider building reserves or reinvesting profits strategically to support future growth or buffer against market volatility.
• Risk Management: As the company grows, plan for potential risks such as client concentration, economic downturns, or operational bottlenecks.
• Enhance Financial Reporting: Although audit exemption applies, consider voluntary internal audits or reviews to assure stakeholders of financial integrity and accuracy.
• Growth Planning: Leverage strong financial footing to explore market expansion, additional services, or strategic partnerships to increase competitive advantage.

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