Company Number: 13477467

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: DECLINE
   ABI CONSULTANCY SERVICES LTD presents significant credit risk due to ongoing net liabilities and insufficient working capital. The company has reported a negative net asset position for the last three years and is currently unable to cover its short-term liabilities with available current assets. The decline in cash balances and debtors over the latest year exacerbates liquidity concerns. The business is small with only one employee and limited resources, indicating low operational scale and resilience. While the director shows full control and there are no red flags on governance, the financial profile does not demonstrate the capacity to service debt or withstand economic shocks at this stage.

2. Financial Strength:
   The balance sheet reveals persistent net liabilities: net assets decreased from -£459 at 2023 year-end to -£881 at 2024 year-end. Current assets have dropped sharply from £1,027 to £407, while current liabilities remain high at £1,288. The company holds minimal fixed assets (not disclosed, presumed negligible) and a very low equity base with only £1 in share capital. Retained earnings are deeply negative (-£882), reflecting accumulated losses since incorporation in 2021. Overall, the company’s financial structure is weak, with no buffer to absorb further losses or fund growth.

3. Cash Flow Assessment:
   Cash at bank fell from £767 to £335 in the latest year, indicating cash burn and constrained liquidity. Debtor balances decreased from £260 to £72, which could signal collection issues or reduced sales. Current liabilities remain substantial and exceed current assets by £881, suggesting potential difficulties meeting short-term obligations. The company’s working capital is negative, which restricts operational flexibility and increases default risk on any new credit facilities.

4. Monitoring Points:

• Cash balances and liquidity trends: Watch for stabilisation or improvement in cash holdings.
• Debtor collection efficiency: Monitor aging of receivables and any increase in bad debt provisions.
• Profitability turnaround: Track any movement toward positive retained earnings or net income.
• Current liabilities management: Observe any reduction in short-term debts or renegotiation of payment terms.
• Business activity and revenue streams: Given the small size, changes in contracts or client base could materially impact financial health.