WOODBOURNE CONSULTING LTD

Executive Summary

WOODBOURNE CONSULTING LTD shows clear signs of financial stress, including negative net assets and poor liquidity, despite a recent small profit. Immediate actions to improve cash flow and increase revenues are critical to avoid further deterioration. With focused financial management and potential capital injection, the company has a chance to stabilize and recover.

WOODBOURNE CONSULTING LTD - Analysis Report

Company Number: 14017138

Analysis Date: 2025-07-29 16:14 UTC

Financial Health Assessment: WOODBOURNE CONSULTING LTD (as at 30 September 2024)

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1. Financial Health Score: D

Explanation:
The company currently exhibits significant financial distress, reflected by negative net assets, persistent working capital deficits, and minimal turnover. While it is still operational (active status) and not overdue on filings, the financial "vital signs" indicate symptoms of financial strain that require urgent attention to avoid further deterioration.

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2. Key Vital Signs & Interpretation

Metric	2024 Value (£)	Interpretation
Turnover	3,750	Very low revenue for a management consultancy, suggesting limited business activity or client engagement.
Profit for Period	2,066	Positive profit this year, indicating some operational improvement compared to last year.
Current Assets	60	Extremely low liquid assets, close to zero cash availability ("starving cash flow").
Current Liabilities	494	Short-term debts exceed current assets, leading to a working capital deficit (negative £434).
Net Current Assets	-434	Indicates inability to cover short-term obligations with liquid assets, a symptom of liquidity stress.
Net Assets (Shareholders' Funds)	-434	Negative equity means liabilities exceed assets, a "balance sheet wound" that signals accumulated losses.
Fixed Assets	0	No long-term asset base, suggesting limited investment or capital resources.
Employee Count	1	Very small scale of operations consistent with micro-entity status.

Trend Analysis:

• The company’s net assets improved from -£1,720 (2023) to -£434 (2024), showing progress but still negative equity.
• Turnover dropped dramatically from £21,229 in 2023 to £3,750 in 2024, indicating a significant reduction in business volume.
• Profitability returned to positive in 2024 (£2,066), which is a positive sign, although absolute figures are low.

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3. Diagnosis: Financial Condition Assessment

Symptoms of Distress:

• Liquidity Strain: The company’s current liabilities exceed its current assets, creating a short-term funding gap. This "cash flow hunger" could hinder day-to-day operations if not addressed promptly.
• Negative Equity: Persistent negative shareholders’ funds indicate the company has accumulated losses that erode its net worth. This is akin to an underlying “chronic illness” in the financial health of the company.
• Revenue Decline: Sharp reduction in turnover suggests challenges in market demand, client retention, or operational capacity. This indicates the business may be struggling to maintain its customer base or revenue streams.
• Minimal Asset Base: Lack of fixed assets limits the company’s collateral and investment capacity, restricting growth potential and financial resilience.

Strengths:

• The company has returned to profitability in the most recent year, which can be viewed as a "sign of recovery" if sustained.
• No overdue filings or legal distress (no liquidation or administration), showing compliance and operational continuity.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Improve Liquidity Management:

   • Prioritize improving cash flow by accelerating receivables, negotiating extended payment terms with suppliers, or injecting fresh working capital.
   • Consider a short-term overdraft facility or alternative financing to bridge liquidity gaps.

2. Boost Revenue Streams:

   • Reassess business development and client acquisition strategies to reverse turnover decline.
   • Explore new markets, diversify service offerings, or increase marketing efforts to stimulate sales growth.

3. Cost Control and Efficiency:

   • Review operating expenses to identify and eliminate unnecessary costs, improving profitability margins.
   • Given the small scale, consider outsourcing non-core functions to reduce fixed overheads.

4. Strengthen Equity Position:

   • Inject additional equity capital from the shareholder or external investors to restore positive net asset value, improving financial stability and creditor confidence.

5. Regular Financial Monitoring:

   • Implement robust financial reporting and cash flow forecasting to detect early symptoms of distress and act proactively.
   • Engage professional advisory support to refine financial strategy and turnaround plans.

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Medical Analogy Summary:
WOODBOURNE CONSULTING LTD is currently exhibiting symptoms akin to a patient with low vitality and a weakened immune system—negative net assets and poor liquidity represent "financial anemia." However, the recent positive profit is a hopeful "pulse" indicating potential recovery. Without immediate treatment targeting cash flow and revenue enhancement, the company risks slipping into deeper distress.

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