SYNCPULSE CONSULTING LIMITED

Executive Summary

Syncpulse Consulting Limited is a newly formed IT consultancy facing typical startup financial challenges, including negative working capital and net liabilities. While these symptoms indicate early financial strain, the company maintains good compliance and has controlled overheads. Focused efforts on cash flow management and revenue growth will be critical to improving financial health and ensuring sustainable operations.

SYNCPULSE CONSULTING LIMITED - Analysis Report

Company Number: 15585665

Analysis Date: 2025-07-29 12:25 UTC

Financial Health Assessment Report: Syncpulse Consulting Limited

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1. Financial Health Score: D

Explanation:
The company is newly incorporated (March 2024) and has just filed its first set of accounts to 31 March 2025. The financials show negative net current assets and net liabilities of £359, indicating initial financial distress or startup losses. While this is not unusual for a new business, the negative working capital and net liabilities are "symptoms of distress" that require close monitoring. Overall, the financial health is below average, reflecting early-stage challenges.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	715	Very low cash or short-term resources available to cover debts.
Current Liabilities	1,074	Short-term obligations exceed current assets, a warning sign.
Net Current Assets (Working Capital)	-359	Negative working capital signals potential liquidity concerns.
Net Assets (Equity)	-359	Company owes more than it owns; early-stage losses or investments.
Average Number of Employees	2	Small team consistent with micro-entity status.
Exemption from Audit	Yes	Small size reduces compliance burden but less external assurance.

Interpretation:
The "vital signs" suggest the company is in the startup phase with limited resources and some short-term liabilities exceeding assets. This is akin to a patient in early recovery but showing signs of "nutritional deficiency" — the business has potential but needs capital injection or revenue growth to stabilize.

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3. Diagnosis

• Startup Phase Challenges: Syncpulse Consulting Limited is in its infancy, incorporated less than 1.5 years ago, typical for negative equity and working capital due to initial setup costs and limited trading history.
• Liquidity Risk: Negative net current assets indicate cash flow may be tight. The company must carefully manage its payables and receivables to avoid liquidity strain.
• Small Scale Operations: With only two employees and micro-entity reporting, the company operates with low overheads but also limited financial buffer.
• Ownership and Control: One director (Mr. Seymour) holds 75-100% ownership and full voting rights, providing decisive control but also concentration risk in decision-making.
• Compliance Status: All filings are up to date with no overdue accounts or confirmation statements, indicating good administrative compliance.

Overall, the company is in an "early convalescence" stage, with startup-related financial strain but no immediate signs of insolvency or operational failure.

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4. Recommendations

• Improve Working Capital: Seek ways to increase current assets, such as injecting capital or improving cash collection from clients. This will build a "healthy cash flow" buffer.
• Cost Management: Continue to control overheads strictly, considering the small headcount is appropriate for current activity.
• Revenue Growth Focus: Accelerate client acquisition and project delivery to turn around the negative equity by generating profits.
• Financial Monitoring: Regularly review cash flow forecasts to identify potential liquidity crunches early (like monitoring vital signs in a patient).
• Consider External Funding: If cash flow remains tight, explore options such as shareholder loans or small business finance to stabilize finances.
• Governance: Given concentrated ownership, consider adding independent advice or oversight to mitigate decision-making risks.

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