STARDUST CONSULTING LTD

Executive Summary

Stardust Consulting Ltd has transitioned successfully from dormancy to active trading, showing significant growth in working capital and equity. The company demonstrates a solid financial foundation but should focus on improving debtor collections to maintain healthy cash flow. Overall, the financial outlook is positive with room for cautious optimism as the business scales.

STARDUST CONSULTING LTD - Analysis Report

Company Number: 13128383

Analysis Date: 2025-07-20 11:42 UTC

Financial Health Assessment of Stardust Consulting Ltd as of 31 January 2024

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1. Financial Health Score: B

Explanation:
Stardust Consulting Ltd shows a solid and improving financial position with positive net assets and increasing working capital. While still a relatively young and small company, the key vital signs reveal healthy liquidity and a growing equity base. However, the company remains small in scale, and its inactive (dormant) filing status until recently suggests limited operational history, which warrants cautious optimism.

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2. Key Vital Signs

Metric	2022 (£)	2023 (£)	2024 (£)	Interpretation
Current Assets	6,649	6,649	21,860	Significant increase in current assets (cash + debtors), indicating better liquidity and receivables growth.
Cash at Bank	4,649	4,649	2,815	Cash decreased, but overall liquidity supported by rising trade debtors and other receivables.
Trade & Other Debtors	2,000	2,000	19,045	Sharp increase in receivables; potential warning sign if collections are delayed.
Current Liabilities	4,957	4,957	5,463	Slight increase in short-term obligations, manageable relative to assets.
Net Current Assets (Working Capital)	1,692	1,692	16,397	Healthy and rapidly improving working capital, a vital "pulse" for operational stability.
Net Assets (Equity)	1,692	1,692	16,609	Substantial growth in net assets, showing increased retained earnings or capital injections.
Share Capital	100	100	100	Minimal share capital, typical for small private companies.
Employees (Average)	1	1	2	Small but growing workforce, implying gradual business expansion.

Additional Notes:

• The company was classified as dormant until recently, now showing operational activity.
• The presence of director loans in 2023 (£4,562) disappeared by 2024, which may indicate repayment or restructuring of related party financing.
• Tangible fixed assets are minimal (£212), consistent with a consultancy business model.

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3. Diagnosis: Financial Condition and Symptoms

• Healthy cash flow symptom: Although cash on hand decreased slightly, the overall current assets rose substantially due to increased trade and other debtors. This suggests the company is generating more business but may be experiencing delayed payments from clients. Monitoring debtor days will be important to avoid liquidity stress.

• Improved working capital: The jump in net current assets from £1,692 to £16,397 is a strong sign that the company has strengthened its short-term financial "immune system," enabling it to cover short-term debts comfortably.

• Equity growth: The net assets have increased nearly tenfold, indicating either accumulated profits retained in the business or additional capital invested. This is a positive sign of financial resilience and potential for investment in growth.

• Small scale and early stage: Stardust Consulting Ltd is a young company with modest capital and a small team. It operates in management consultancy (SIC 70229), a sector reliant on human capital rather than heavy physical assets, which fits with the financial profile observed.

• Dormant status until recently: The dormant account category shows the company was inactive or non-trading for earlier periods, which can be a symptom of a business in incubation or transition phase. Now active, it needs to establish consistent revenue and cash inflow patterns.

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4. Recommendations: Improving Financial Wellness

• Improve debtor management: The large increase in trade and other debtors (£19,045) relative to cash calls for tighter credit control and faster collections to convert receivables into cash. This will maintain a healthy "heartbeat" of cash flow.

• Build cash reserves: Focus on turning receivables into cash to restore a more robust cash balance, which provides flexibility and buffers against unforeseen expenses.

• Monitor liabilities: Keep current liabilities in check, ensuring they do not grow disproportionately to current assets to avoid liquidity strain.

• Plan for growth: With growing equity and working capital, consider strategic investment in talent or technology to scale operations, keeping an eye on cost control to preserve profit margins.

• Regular financial reviews: Conduct periodic financial health checks to detect any emerging symptoms of distress early, especially given the company’s recent transition from dormancy to active trading.

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Summary

Stardust Consulting Ltd is showing promising signs of financial health with improving working capital and equity growth after a period of dormancy. While the company’s cash flow needs careful monitoring due to rising receivables, the overall financial "vital signs" indicate a stable and growing business foundation. Attention to debtor management and cash reserves will be key to sustaining this positive trajectory.