AC TECHNICAL CONSULTING LTD

Executive Summary

AC Technical Consulting Ltd shows improving financial health with increased net assets and cash reserves, indicating current capacity to meet short-term liabilities. However, its very small size and limited operational history suggest some vulnerability, warranting conditional credit approval with close monitoring of cash flow, revenue consistency, and working capital trends.

AC TECHNICAL CONSULTING LTD - Analysis Report

Company Number: 13635514

Analysis Date: 2025-07-29 16:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   AC Technical Consulting Ltd demonstrates an improving net current asset position and a positive movement in shareholders' funds over the latest financial year. However, the company remains very small in scale with limited financial history and low asset base. The absence of trade debtors in the latest year suggests either a change in business model or timing differences in revenue recognition. Their ability to service debt is currently adequate given positive net current assets and cash holdings, but the thin margin of working capital and limited operational scale warrant close monitoring. Approval could be considered with conditions related to ongoing liquidity reviews and confirmation of consistent revenue generation.

2. Financial Strength:
   The balance sheet shows a modest but positive net asset position of £8,316 at 30 September 2024, up from £20 the prior year. The increase is driven by a £8,296 profit and loss reserve. Fixed assets are not reported, indicating a likely asset-light business model typical of consulting services. Current liabilities have decreased significantly from £34,786 to £18,904, improving the working capital ratio. The company is micro-sized with only one employee, indicating limited operational complexity and low fixed costs, but also vulnerability to single-person dependency.

3. Cash Flow Assessment:
   Cash at bank increased from £20,742 to £27,220, supporting liquidity. Net current assets improved to £8,316, reflecting a healthy short-term liquidity position relative to current liabilities. The prior year’s large debtor balance (£14,064) disappeared, which requires clarification—potentially indicating faster collections or reduced sales on credit terms. The company’s cash position is adequate to meet current obligations; however, the limited scale poses a risk if unexpected expenses arise or if revenue streams fluctuate.

4. Monitoring Points:

• Confirm the nature and stability of revenue streams, especially given the absence of reported debtors in the latest period.
• Monitor cash flow closely for any signs of strain, particularly as the company has a single employee and limited reserves.
• Track any changes in current liabilities, especially taxation and social security obligations, to ensure they remain manageable.
• Observe the company’s ability to maintain or grow shareholders’ funds and net current assets over subsequent periods.
• Evaluate management’s capacity to handle business growth and maintain financial controls given the small operational scale.