A J K CONSULTING SERVICES LIMITED

Executive Summary

A J K Consulting Services Limited appears financially stable with strong liquidity, low liabilities, and good compliance. However, the noticeable decline in net assets and cash reserves over the last year, coupled with minimal share capital, suggests monitoring profitability and cash flow is prudent. Overall, the company presents a low risk profile, but further due diligence on operational sustainability and financial trends is recommended.

A J K CONSULTING SERVICES LIMITED - Analysis Report

Company Number: 12741311

Analysis Date: 2025-07-29 12:56 UTC

1. Risk Rating: LOW
   The company demonstrates strong liquidity with a significant cash balance relative to current liabilities and positive net current assets. There are no overdue filings, and the company is active with up-to-date accounts and confirmation statements, indicating good compliance and operational status.

2. Key Concerns:

• Declining net assets and cash reserves over the last two years (from £154,966 in 2023 to £110,100 in 2024), which may warrant investigation into profitability and cash flow trends.
• Minimal share capital (£12) may limit the company’s ability to raise equity finance if required.
• Very low debtor balances with a high cash figure could indicate the company is heavily reliant on immediate cash transactions or prepayments, which may affect future revenue recognition or stability.

3. Positive Indicators:

• Cash resources of £111,439 far exceed current liabilities of £1,783, suggesting strong short-term liquidity and ability to meet obligations.
• No overdue filings or compliance issues; accounts and confirmation statements are timely.
• Low current liabilities and positive net current assets (£109,674) signal good working capital management.
• Directors have maintained consistent accounting policies and the company benefits from exemption from audit, consistent with its size category.
• The company classification as a small private limited company with management consultancy SIC code suggests a low capital-intensive business model.

4. Due Diligence Notes:

• Review the company’s profit and loss account (not filed publicly) to assess the reasons behind the reduction in net assets and cash balances between 2023 and 2024.
• Confirm the sustainability of revenue streams given the very low debtor balances and the nature of management consultancy activities.
• Verify the relationship and roles of the two directors given the shared address and possible related party transactions.
• Assess whether there are any contingent liabilities or off-balance sheet exposures not reflected in the accounts.
• Confirm no director disqualifications or regulatory sanctions given the absence of PSC data and limited public disclosures.