STREETWISE CONSULTANCY LTD

Executive Summary

STREETWISE CONSULTANCY LTD, a micro-entity consulting business, shows signs of financial fragility due to a sharp decline in liquidity and minimal net assets, despite having no liabilities. Immediate focus on cash flow optimization and revenue enhancement is essential to stabilize and grow the company’s financial health. Without such interventions, the company risks operational strain despite its currently debt-free status.

STREETWISE CONSULTANCY LTD - Analysis Report

Company Number: 13910987

Analysis Date: 2025-07-20 16:57 UTC

Financial Health Assessment: STREETWISE CONSULTANCY LTD

---

1. Financial Health Score: D

Explanation:
The company currently exhibits minimal financial substance, with extremely low net assets and current assets, indicating fragile financial vitality. While no liabilities or debts are present (a positive sign), the dramatic drop in current assets from £2,859 in 2023 to just £125 in 2024 signals a concerning depletion of liquidity. This is akin to a patient who has lost significant blood volume but is still breathing—there is no immediate crisis, but without intervention, the risk of collapse increases.

---

2. Key Vital Signs

Metric	2024 Value	Interpretation
Fixed Assets	£0	No long-term investments or equipment assets.
Current Assets	£125	Very low cash or receivables; liquidity is extremely tight.
Current Liabilities	£0	No immediate debts due within one year; no financial pressure here.
Net Current Assets	£125	Positive but minimal working capital; limited buffer to cover short-term needs.
Net Assets (Shareholder Funds)	£125	Minimal equity base; company’s net worth is very small.
Employee Count	0	No employees; all activities likely handled by the director or outsourced.

• Liquidity Status: The drastic decline in current assets (down by 95.6% from previous year) suggests cash flow constraints or capital withdrawal.
• Leverage: No debts reported; the company avoids financial strain from borrowing.
• Asset Base: No fixed assets, indicating a service-oriented business without physical assets.

---

3. Diagnosis

Underlying Business Health:
STREETWISE CONSULTANCY LTD is in its early growth phase, reflected by its recent incorporation (2022) and micro-entity classification. The company shows the "symptom" of shrinking liquidity reserves—critical "body fluids" for daily operations—despite no evident liabilities. This could be due to multiple causes such as low or no trading activity, delayed client payments, or capital taken out by the owner.

The absence of liabilities is a positive sign, reflecting no financial distress from creditors. However, the extremely low cash position is a "warning symptom," suggesting that the business may struggle to meet unexpected expenses or invest in growth without external funding or increased revenue.

The company's single director and sole person with significant control (PSC) is Miss Shianne Stannard, who holds full ownership and voting rights, ensuring centralized control but also placing the onus of financial management heavily on one individual.

---

4. Recommendations

To improve the financial wellness and avoid progression toward financial distress, consider the following "treatments":

1. Enhance Cash Flow Management:

   • Review accounts receivable processes to accelerate collections.
   • Tighten expenditure controls to conserve cash.
   • Consider short-term working capital financing if revenue inflows are delayed.

2. Increase Business Activity or Revenue Streams:

   • Develop marketing or client acquisition strategies to boost sales and cash inflow.
   • Explore diversifying services within the consultancy sector to enhance income.

3. Build Financial Reserves:

   • Retain earnings or inject additional capital to strengthen net assets and liquidity buffer.
   • Avoid unnecessary withdrawals until a stable cash position is established.

4. Maintain Compliance and Reporting:

   • Continue timely filing of accounts and confirmation statements to avoid penalties that could further strain resources.

5. Monitor Financial "Vitals" Regularly:

   • Monthly cash flow forecasting to detect early warning signs.
   • Periodic review of expenses and asset utilization.

---