617 CONSULTING LIMITED

Executive Summary

617 Consulting Limited shows strong liquidity and a growing equity base consistent with a micro-entity in management consultancy. The company is financially stable with no immediate credit concerns, supported by transparent director loans and good working capital. Continued monitoring of cash flows, director loan activity, and profitability is recommended to maintain creditworthiness.

617 CONSULTING LIMITED - Analysis Report

Company Number: 13120443

Analysis Date: 2025-07-20 12:14 UTC

1. Credit Opinion: APPROVE. 617 Consulting Limited demonstrates a solid liquidity position with net current assets of £205,976 as of April 2024, reflecting a significant improvement from £38,329 in December 2022. The company is active, compliant with filing deadlines, and has no adverse status indicators such as liquidation or administration. Although the company relies on director loans (£89,491 owed to the company by the director), these are documented and repayable on demand with interest, indicating transparent financial arrangements. The small scale and micro-entity status suggest limited complexity or risk. Overall, the company appears capable of servicing credit facilities at its current size and scale.

2. Financial Strength: The balance sheet shows healthy net current assets of £205,976 against current liabilities of £69,980, indicating a robust working capital position. Shareholders’ funds have increased substantially from £38,429 in 2022 to £205,976 in 2024, evidencing capital growth and retained profits accumulation. The company’s total assets less current liabilities mirror the equity, suggesting no long-term debt and a clean capital structure. The small share capital (£100) is typical for micro-entities and does not negatively impact financial strength given the healthy reserves. The director’s loan balance is a notable intra-group financing element but does not compromise solvency.

3. Cash Flow Assessment: Current assets of £275,956 primarily likely include cash and receivables, which comfortably exceed current liabilities of £69,980, providing strong liquidity to meet short-term obligations. The increase in net current assets from £38,329 to £205,976 indicates improving operational cash flow or capital injections. The minimal employee base (2 employees) and micro status imply low fixed overhead costs, supporting cash flow stability. Director loan withdrawals and repayments suggest active cash management by ownership but should be monitored to avoid liquidity strain if personal repayments slow.

4. Monitoring Points:

• Director Loan Account: Monitor the balance, interest accrual, and repayment schedule to ensure it remains manageable and does not mask underlying cash flow issues.
• Revenue and Profit Trends: As income statement data is not provided, future filings should be reviewed to confirm sustained profitability and cash generation.
• Working Capital Management: Continue to track current assets vs. current liabilities to confirm liquidity remains strong as the company grows.
• Compliance and Filing Timeliness: Maintain oversight on statutory filing deadlines to avoid penalties or regulatory issues.
• Business Growth and Industry Risks: Monitor sector developments in management consultancy to assess potential impacts on client demand and credit risk.