TRIPLE CROWN CONSULTING LTD

Executive Summary

Triple Crown Consulting Ltd maintains a positive net asset position but faces challenges with sharply reduced working capital and increased short-term liabilities, indicating liquidity stress. While investments in fixed assets suggest growth intentions, the company must urgently improve cash flow management and reduce reliance on director loans to strengthen financial health. Immediate focus on operational cash flow and cost control will enhance resilience and sustain business viability.

TRIPLE CROWN CONSULTING LTD - Analysis Report

Company Number: 14368521

Analysis Date: 2025-07-20 18:48 UTC

Financial Health Assessment for Triple Crown Consulting Ltd

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1. Financial Health Score: C

Explanation:
Triple Crown Consulting Ltd shows signs of continued operation with positive net assets but exhibits warning signals due to a sharp decline in net current assets and an increase in short-term liabilities. The financial position is stable but under pressure, akin to a patient with manageable but concerning symptoms requiring immediate attention.

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2. Key Vital Signs

Metric	2024 Value (£)	2023 Value (£)	Interpretation
Fixed Assets	58,090	428	Significant increase indicates investment in long-term resources, a positive development.
Current Assets	58,576	137,163	Sharp decline suggests reduced liquid resources and receivables, a symptom of cash flow stress.
Current Liabilities	56,380	48,893	Increased short-term debts, heightening liquidity risk.
Net Current Assets	2,196	88,270	Drastic drop reflects tight short-term financial health; minimal working capital available.
Total Assets Less Current Liabilities	60,286	88,698	Smaller buffer against liabilities; still positive but reduced margin of safety.
Shareholders Funds (Equity)	60,286	88,698	Decline indicates reduced retained earnings or capital, possibly due to operating losses or draws.

Additional Observations:

• Directors’ loan increased to £37,852 (2024) from £6,894 (2023), indicating reliance on director funding to manage liquidity.
• Average employees remain low (2), consistent with micro-entity status.
• No audit required; accounts prepared under micro-entity provisions.

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3. Diagnosis: Financial Condition Assessment

Triple Crown Consulting Ltd is currently in a stable but fragile condition, comparable to a patient who has experienced a sudden drop in vital signs (working capital) but is still conscious and responsive. The significant reduction in current assets and net current assets suggests cash flow tightening, which may hamper day-to-day operations and meeting short-term obligations. The increase in fixed assets shows management is investing in the business’s infrastructure or capacity, which can be positive if it leads to growth.

However, the increased current liabilities and reliance on director loans reflect symptoms of financial stress and potential liquidity risk. The drop in shareholders’ funds suggests the company may be experiencing operational losses or withdrawals, reducing financial resilience.

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4. Recommendations: Action Plan for Financial Wellness

• Improve Working Capital Management:
  Review accounts receivable and payable cycles to accelerate collections and extend payment terms where possible. Consider tighter credit control to ensure cash inflows.

• Director Loan Repayment Strategy:
  Formulate a plan to repay or formalize director loans to avoid long-term reliance on internal funding, which can strain personal finances and corporate governance.

• Cost Control Measures:
  Analyze and reduce overheads or discretionary expenses to preserve cash, especially as the business is still small with limited employee costs.

• Revenue Enhancement:
  Focus on boosting sales or consultancy engagements to increase cash inflows. Diversifying client base or service offerings might mitigate revenue volatility.

• Financial Forecasting and Monitoring:
  Implement regular cash flow forecasting to anticipate liquidity needs and avoid surprises. Early detection of distress symptoms can guide timely interventions.

• Consider External Financing:
  If internal measures are insufficient, explore external funding options such as small business loans or grants with favourable terms to support growth and liquidity.

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