STRAWBERRY CONSULTING LIMITED

Executive Summary

Strawberry Consulting Limited shows solid financial health with strong liquidity and positive net assets typical of a newly established consultancy. The company’s cash reserves and working capital indicate a stable operational base, though reliance on a single director and limited capital base present growth risks. Strategic focus on expanding revenue streams and building capital reserves will support sustainable development.

STRAWBERRY CONSULTING LIMITED - Analysis Report

Company Number: 14408742

Analysis Date: 2025-07-29 16:16 UTC

Financial Health Assessment Report for STRAWBERRY CONSULTING LIMITED

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1. Financial Health Score: B

Explanation:
Strawberry Consulting Limited demonstrates a generally healthy financial position for a young, small consultancy business. The company shows positive net current assets and shareholders’ funds, indicating a stable liquidity position. However, the limited scale of operations, relatively low share capital, and absence of detailed profit and loss data (due to small company exemptions) limit a more robust grade. The score "B" reflects a sound but still nascent financial health, typical of a start-up consultancy in its first full year.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Share Capital	100	Minimal paid-in capital; typical for small, owner-managed startups.
Current Assets	26,417	Includes cash and trade debtors; indicates available resources to cover short-term obligations.
Cash at Bank	19,409	Healthy cash reserve relative to liabilities; suggests good cash flow management.
Trade Debtors	7,008	Moderate receivables; manageable but requires monitoring for timely collections.
Current Liabilities	7,772	Short-term debts including tax and other creditors; manageable given asset base.
Net Current Assets	18,645	Positive working capital; "healthy cash flow" symptom showing ability to meet short-term needs.
Shareholders’ Funds	18,645	Net assets equal shareholders’ equity; no long-term debt or hidden liabilities reported.
Employee Count	1	Sole director/operator; low overheads but limits operational scale.

Additional Observations:

• The company's current ratio (Current Assets / Current Liabilities) is approximately 3.4, which is a strong liquidity indicator, showing that it can comfortably cover its short-term debts.
• The company is exempt from audit and did not file an income statement, which is typical for a small company but means profitability cannot be directly assessed.

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3. Diagnosis

Symptoms Analysis:
Strawberry Consulting Limited exhibits the classic "healthy pulse" of a start-up consultancy: positive working capital, a solid cash buffer, and no indication of financial distress or liquidity crunch. The balance sheet shows that the company is not reliant on external borrowing or overdrafts, which is a positive sign of financial independence.

The low share capital and single employee suggest a business in its early developmental stage, relying predominantly on the director’s expertise and client relationships. Trade debtors are present but not excessive, implying reasonable credit control.

The lack of detailed profit and loss data ("Income Statement has not been delivered") is common for small companies but means we must rely on balance sheet strength rather than profitability metrics. There are no signs of overtrading or stretched payables that might indicate stress.

Risk Factors:

• Concentration risk with one director owning 75-100% of shares and controlling the company. This centralization of control can pose continuity risks if the director becomes unavailable.
• The company’s financial health is closely tied to the director’s capacity and client base, which has not yet diversified.
• Absence of long-term assets or investments may indicate limited resilience to market disruptions.

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4. Recommendations

1. Maintain Healthy Cash Flow:
   Continue monitoring cash flows closely to ensure liquidity remains strong, especially as the company grows and takes on more clients or employees.

2. Build Capital Reserves:
   Consider modest increases in share capital or retained earnings reinvestment to strengthen the equity base, enhancing financial stability.

3. Expand Client Base and Diversify Revenue:
   To reduce reliance on single-person operations, build the client portfolio and explore hiring or subcontracting to distribute operational risk.

4. Implement Profitability Tracking:
   Although exempt from filing income statements, maintain internal profit and loss records to monitor operational performance and guide strategic decisions.

5. Plan for Growth and Succession:
   Develop contingency plans for management continuity and potential business expansion, including formalizing roles and responsibilities beyond the director.

6. Tax and Compliance Vigilance:
   Keep current with tax payments and filing deadlines to avoid penalties, as current liabilities include tax and social security amounts.

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