UNITED SALES CONSULTANCY AND COACHING LTD

Executive Summary

UNITED SALES CONSULTANCY AND COACHING LTD maintains a stable but modest financial position typical for a micro-entity in the early stages of growth. The company shows positive working capital and slight equity improvement, indicating basic financial health but limited buffer capacity. Strengthening cash reserves, profitability, and financial monitoring will be crucial to ensure sustainable growth and resilience against potential shocks.

UNITED SALES CONSULTANCY AND COACHING LTD - Analysis Report

Company Number: 13121476

Analysis Date: 2025-07-20 11:25 UTC

Financial Health Assessment for UNITED SALES CONSULTANCY AND COACHING LTD

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1. Financial Health Score: C

Explanation:
The company exhibits modest but positive financial stability with net current assets consistently above zero, indicating it can cover short-term obligations. However, the scale of operations is very small, with limited asset base and equity growth. This "C" grade suggests a stable but fragile financial position, typical for a micro-entity in a start-up or early growth phase. There is room to strengthen liquidity and capital to avoid potential distress.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Current Assets	£4,847	Cash, receivables, and short-term assets sufficient but modest.
Current Liabilities	£4,276	Obligations due within a year close to current assets, tight liquidity.
Net Current Assets	£571	Positive working capital — a vital sign of short-term financial health.
Net Assets (Equity)	£571	Small but positive net worth, indicating residual value after liabilities.
Share Capital	£100	Minimal initial capital invested by shareholders.
Employee Count	2 employees	Small team consistent with micro-entity classification.
Financial Trends	Increased net assets from £178 in 2023 to £571 in 2024	Indicates slow but positive equity growth.

Interpretation of Vital Signs:
The company's "vital signs" show a healthy but fragile financial pulse. Positive net current assets mean the company currently has enough short-term resources to meet its immediate debts — akin to a patient with stable vital signs but low reserve strength. The gradual increase in net assets suggests some retained earnings or capital injections, which is a positive symptom of growth or improved profitability.

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3. Diagnosis

UNITED SALES CONSULTANCY AND COACHING LTD is in a stable financial condition typical of a micro-sized start-up or small consultancy firm. The company has maintained positive working capital across recent years, which is a good sign of operational viability and healthy cash flow management. However, the absolute values are low, indicating limited financial buffer to absorb shocks or sudden expenses.

The absence of any overdue filings or liquidity red flags points to sound administrative discipline and compliance with regulatory requirements. The company’s micro-entity status limits its reporting obligations but also reflects its small scale and limited asset base.

The business appears to be in an early growth phase supported by the single controlling director/owner, with incremental build-up in equity and current assets. However, the thin net asset base and narrow margin between current assets and liabilities suggest potential vulnerability if revenues dip or unexpected costs arise.

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4. Recommendations

• Build Cash Reserves: To improve the “financial immune system,” the company should focus on increasing cash balances and net current assets to create a buffer against operational risks and unforeseen expenses.

• Enhance Profitability: Explore ways to increase revenue streams or optimize cost structures. Healthy profits will feed into retained earnings, strengthening the net asset position.

• Diversify Client Base: Reducing dependency on a few clients or projects will help smooth cash inflows and reduce business volatility symptoms.

• Review Credit Terms: Tighten debtor collections and negotiate favorable supplier payment terms to improve working capital cycles.

• Regular Financial Monitoring: Implement monthly cash flow forecasts and variance analysis to detect early symptoms of financial stress and act proactively.

• Consider Additional Capital Injection: A small capital increase or external funding could provide the company with stronger equity and working capital to support expansion and absorb shocks.

• Employee Development: With only two employees, investing in staff skills and productivity can deliver operational improvements without significant cost increases.

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