WE ARE 3 CONSULTING LTD.

Executive Summary

WE ARE 3 CONSULTING LTD. exhibits early-stage financial stability with positive working capital and a small equity base typical for a micro-entity start-up. While the company shows no immediate financial distress, it remains vulnerable due to modest reserves and scale. Focus on cash flow management, cautious growth, and financial forecasting will be essential for sustainable financial health moving forward.

WE ARE 3 CONSULTING LTD. - Analysis Report

Company Number: SC754265

Analysis Date: 2025-07-20 13:50 UTC

Financial Health Assessment for WE ARE 3 CONSULTING LTD.

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1. Financial Health Score: C

Explanation:
As a newly incorporated micro-entity (less than 2 years old) with limited financial data, the company shows early-stage signs of stability but with limited scale. The score "C" reflects a cautious but stable financial footing, typical for a start-up in its first financial year. The company has positive net current assets and a small positive net asset base, but very modest absolute figures and limited working capital cushion.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	1,681	Modest cash/debtors/inventory available for liabilities. Indicates some liquidity.
Current Liabilities	644	Short-term debts are low, manageable at this stage.
Net Current Assets	1,037	Positive working capital; the company can cover short-term debts comfortably.
Total Net Assets	287	Equity backing is minimal but positive, indicating some retained earnings or capital.
Average Number of Employees	2	Very small team, typical for micro-entity consultancy.

• Working Capital (Net Current Assets) is a vital sign akin to a "healthy pulse" indicating the company can meet its immediate obligations — this is currently positive, a good symptom.
• Net Assets are positive but very low, which is expected for a newly formed company still building resources.
• The company has accrued deferred income (£750), which may represent advance payments or obligations—this warrants monitoring but is not unusual.

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3. Diagnosis: Business Financial Health

WE ARE 3 CONSULTING LTD. is in the early stages of business life, showing fundamental financial "vital signs" of survival and initial stability. The company’s positive working capital suggests no immediate cash flow distress, which is a good "heartbeat" indicator. However, the very low net asset base and modest scale highlight that this is a fragile state typical of start-ups, with limited financial reserves to absorb shocks or fund growth.

The director and sole significant controller, Mr. Chris Bennett-Taylor, holds full ownership and control, which centralizes decision-making but may also concentrate risk.

The number of employees and the micro-entity status indicate a lean operation, which is normal but means the company should be vigilant about operational scalability and cash flow management.

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4. Recommendations: Improving Financial Wellness

• Build Cash Reserves: Aim to increase current assets through improved cash flow management, such as faster client invoicing and tighter credit control. Healthy cash flow is the lifeblood of young companies.
• Monitor Deferred Income: Regularly review accrued/deferred income to ensure obligations are met timely and that revenue recognition aligns with service delivery.
• Plan for Growth Carefully: Scale operations cautiously to avoid overextending liabilities or staff costs. Maintain a positive working capital buffer as the business expands.
• Financial Forecasting: Develop monthly cash flow forecasts to spot symptoms of financial stress early, akin to routine health checks.
• Consider External Funding: If growth opportunities arise, explore funding options (loans, investors) to strengthen the equity base and fund expansion.
• Maintain Compliance: Ensure timely filing of accounts and confirmation statements to avoid regulatory issues that could harm company reputation or creditworthiness.
• Risk Management: As the sole director and owner, consider personal risk exposure and explore appropriate insurance or protective structures.

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