SOBEA CONSULTANCY LTD

Executive Summary

Sobea Consultancy Ltd shows strong financial health for a micro-entity with improving liquidity and a solid equity base. The company is financially stable but remains in an early growth phase with no employees currently, indicating potential operational constraints. With prudent management and strategic scaling, the outlook for continued financial wellness is positive.

SOBEA CONSULTANCY LTD - Analysis Report

Company Number: 14367828

Analysis Date: 2025-07-20 14:48 UTC

Financial Health Assessment for SOBEA CONSULTANCY LTD

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1. Financial Health Score: B

Explanation:
Sobea Consultancy Ltd demonstrates a solid financial footing for a micro-entity in its early years of operation. It shows positive net current assets and growing shareholders’ funds, indicating good liquidity and capital strength. The absence of liabilities beyond current ones and the lack of audit requirements reduce complexity but also limit detail. The business displays "healthy cash flow" signs, though still early-stage with no employees currently, so growth and operational stability are yet to be proven. Overall, the financial "vital signs" are reassuring but warrant close monitoring as the company scales.

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2. Key Vital Signs

Metric	2024-09-30	2023-09-30	Interpretation
Current Assets	£64,982	£31,607	Significant increase in short-term assets, indicating improved liquidity over the year.
Current Liabilities	£13,041	£11,365	Slight increase in short-term liabilities; manageable given asset growth.
Net Current Assets	£51,941	£20,242	Strong positive working capital, showing the company can comfortably meet short-term debts.
Shareholders’ Funds	£51,941	£20,242	Growth in equity base suggests retained profits or capital injections, strengthening solvency.
Employee Count	0 (2024)	1 (2023)	No employees reported in latest year; suggests potentially low operational activity or outsourcing.
Company Status	Active	Active	No signs of distress or insolvency proceedings.
Company Category	Micro	Micro	Small size with simpler reporting requirements, but also limited operational scale.

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3. Diagnosis: Financial Health Overview

• Liquidity & Working Capital: The company shows "healthy cash flow" symptoms with strong net current assets of £51,941 in 2024, more than doubling from the prior year. This suggests efficient management of receivables, payables, and cash reserves, allowing the company to cover its short-term obligations comfortably.

• Capital Structure: Shareholders’ funds have increased significantly, reflecting retained earnings or capital contributions. This equity base provides a cushion against operational risks and supports future growth initiatives.

• Operational Activity: The average number of employees dropped to zero in the latest year, which might indicate a shift to contractor-based work or minimal direct operations. While this reduces fixed costs, it may also suggest limited business activity or a transitional phase.

• Risk Factors: No overdue filings or legal encumbrances are noted. The company is under the control of a single significant shareholder (Swsz Holdings Ltd) with full control, which can provide stability but also concentration risk.

• Growth & Sustainability: The doubling in net current assets and shareholders’ funds within a year is encouraging for a young micro-entity. However, lack of detailed profit or loss data and employee engagement means the company is still in an early development stage, requiring ongoing monitoring.

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4. Recommendations

1. Maintain and Improve Liquidity: Continue to monitor working capital closely to ensure the company maintains its ability to meet short-term liabilities, especially as it scales operations.

2. Operational Scaling: Consider strategic hiring or formalizing contractor relationships to support business growth and revenue generation. The absence of employees could limit operational capacity.

3. Financial Reporting: Although audit exemption applies, prepare comprehensive internal financial reviews regularly to detect any early "symptoms" of financial distress or inefficiency.

4. Diversify Shareholder Base: Explore opportunities to broaden ownership or involve additional investors to reduce concentration risk and enhance governance.

5. Business Development: Leverage the strong balance sheet to invest in marketing, client acquisition, or service development, which will improve future profit flows and sustainability.

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