20 LONDON PROJECT CONSULTANCY LTD

Executive Summary

20 London Project Consultancy Ltd shows operational continuity with positive net current assets and no compliance lapses but exhibits a material decrease in liquidity and notable provisions that warrant closer scrutiny. Its micro-entity status limits financial transparency, increasing the importance of further due diligence on cash flow and contingent liabilities. Investors should monitor working capital trends and understand underlying risks before commitment.

20 LONDON PROJECT CONSULTANCY LTD - Analysis Report

Company Number: 13383973

Analysis Date: 2025-07-29 18:28 UTC

1. Risk Rating: MEDIUM
   The company demonstrates ongoing operations with modest shareholder funds and current assets exceeding current liabilities as of the latest year. However, there is a significant decline in current assets and creditors compared to the prior year, and provisions for liabilities remain notable relative to equity, indicating some caution.

2. Key Concerns:

• Declining Current Assets and Working Capital: Current assets decreased sharply from £5,279 in 2024 to £1,277 in 2025 while current liabilities also decreased but remain substantial, resulting in tighter working capital.
• Provisions for Liabilities: The company maintains provisions of £425 in 2025, which is relatively high compared to shareholders’ funds (£261), potentially signaling contingent liabilities or risks that require monitoring.
• Micro-Entity Status and Limited Disclosure: Being a micro-entity with unaudited financials restricts transparency and detail, limiting insight into operational performance and cash flows, which adds to uncertainty in risk assessment.

3. Positive Indicators:

• Current Liabilities Are Covered by Current Assets: Despite the decrease, the company still maintains net current assets (£1,277 - £617 = £660), suggesting it can meet short-term obligations.
• Consistent Shareholder Equity Growth: Shareholders’ funds increased modestly from £249 in 2024 to £261 in 2025, indicating some retained earnings or capital support.
• No Overdue Filings or Compliance Issues: Accounts and confirmation statements are filed on time, reflecting good regulatory compliance and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and cause of the significant reduction in current assets and creditors between 2024 and 2025, including any impact on liquidity and operational cash flow.
• Clarify the components and risks associated with provisions for liabilities to assess potential future cash outflows or contingent exposures.
• Obtain more detailed management accounts or cash flow statements if possible, to better understand operational sustainability and short-term liquidity.
• Review business activity alignment with SIC codes and market conditions for sectors such as arts facilities operation and retail sales, to evaluate revenue stability and prospects.