SHUBA CONSULTANCY LIMITED

Executive Summary

Shuba Consultancy Limited has shown significant financial improvement from prior distress, with positive net assets and healthy working capital indicating a stronger balance sheet. However, the dormant filing status and limited operational data suggest the business is in an early or inactive phase. To secure long-term financial wellness, the company should focus on transitioning to active trading, monitoring liquidity, and building profitability through strategic growth initiatives.

SHUBA CONSULTANCY LIMITED - Analysis Report

Company Number: 13601973

Analysis Date: 2025-07-29 18:26 UTC

Financial Health Score: B-

The company shows promising recovery and strengthening from a previous position of distress, but there remain areas requiring attention to build a robust and sustainable financial foundation.

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Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	3,415	Small but growing investment in long-term assets
Current Assets	24,441	Healthy cash and short-term resources
Current Liabilities	16,107	Manageable short-term debts
Net Current Assets	8,334	Positive working capital, indicates liquidity
Total Assets Less CL	11,749	Assets comfortably exceed short-term liabilities
Net Assets (Equity)	11,749	Positive net worth; company value improving
Shareholders Funds	11,749	Equity backing fully positive
Average Employees	2	Small team, consistent with a micro/small entity
Dormant Account Status	Yes	No significant trading activity reported

Interpretation:
The company was previously in a weak financial state in 2023 with negative net assets (£-40) and working capital deficit (net current liabilities). However, in the latest year, there is a clear improvement with positive net assets and healthy working capital. The small size and dormant filing status indicate limited operational activity, which can mask underlying risks or opportunities.

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Symptoms Analysis

• Improved Liquidity ("healthy cash flow"): The jump from negative to positive net current assets suggests the company either infused capital or accumulated resources, alleviating short-term financial stress.
• Asset Growth: Fixed assets have increased modestly, indicating some investment in business infrastructure or equipment, a positive sign of operational readiness.
• Dormant Status: Filing dormant accounts typically means limited or no trading during the year, potentially reflecting a business in incubation or restructuring phase.
• Low Employee Count: With only 2 employees, the business is lean but may be vulnerable to capacity constraints or over-dependence on key individuals.
• Equity Injection: The positive net assets and shareholders funds likely result from capital injections or retained earnings, strengthening the balance sheet.
• No Audit Requirement: Exemption from audit reduces compliance burden but also limits external financial scrutiny which may be a consideration for stakeholders.

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Diagnosis

The company exhibits signs of financial recovery and stability after a period of distress. The positive net assets and current ratio improvement reflect a "return to health" in balance sheet terms. However, the dormant filing status and limited operational data suggest the business is either in a development phase or maintaining minimal activity, which can be a "quiescent state" in financial terms.

The absence of revenue and profit figures limits a complete diagnosis of operational profitability and cash flow generation. The current state points to a company that is solvent and has a foundation for growth but may still face challenges scaling its operations or generating consistent income.

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Prognosis

If current trends continue, the company has a fair outlook with potential to grow its asset base and operational capacity. However, to avoid relapse into financial distress, it will need to transition from dormancy to active trading with sound revenue generation and cost control.

Without active trading and positive cash flow from operations, the company risks stagnation or dependence on shareholder funding. Building a more robust financial "immune system" requires operational activity, revenue diversification, and prudent financial management.

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Recommendations

1. Transition from Dormant to Active Trading: Develop a clear business plan to start or scale operations, ensuring sustainable revenue streams.
2. Monitor Working Capital: Keep a close eye on current assets versus liabilities to maintain liquidity and avoid cash flow "symptoms of distress".
3. Build Profitability Focus: Track income and expenses carefully to move beyond balance sheet recovery into operational profitability.
4. Consider External Audit or Review: Even if not required, an independent financial review can provide assurance and identify improvement areas.
5. Strengthen Governance: With a small team and concentrated ownership, implement strong internal controls and succession planning to mitigate risks.
6. Engage Stakeholders: Transparent communication with investors, suppliers, and customers will support trust and facilitate growth.
7. Plan for Growth: Invest in marketing, staff, and technology to capitalize on consultancy market opportunities reflected by SIC codes.

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