ADHARTAS CONSULTING LIMITED

Executive Summary

Adhartas Consulting Limited exhibits a strong liquidity position and consistent growth in shareholders’ funds, supported by good cash reserves and regulatory compliance. The business appears financially stable with manageable liabilities, although limited disclosure and small operational scale warrant further financial and operational due diligence. Overall, risk factors are low based on currently available data.

ADHARTAS CONSULTING LIMITED - Analysis Report

Company Number: 13575906

Analysis Date: 2025-07-29 14:53 UTC

1. Risk Rating: LOW
   Adhartas Consulting Limited demonstrates strong solvency and liquidity with increasing net current assets and shareholders' funds over recent years. The company is compliant with filing deadlines, and its operational scale and financial metrics indicate stable business performance.

2. Key Concerns:

• Reliance on a small employee base (average 2 employees), which may constrain operational scalability and resilience.
• Absence of an audit report and limited disclosure in financial statements (e.g., no income statement filed), which restricts full financial transparency.
• Exposure to tax liabilities and VAT creditors totaling approximately £39,000, which although manageable, warrants monitoring to ensure timely settlement.

3. Positive Indicators:

• Consistent growth in net current assets from £26,902 in 2021 to £84,335 in 2024, reflecting improving liquidity.
• Healthy cash reserves increasing from £44,867 in 2021 to £110,364 in 2024, supporting operational stability.
• No overdue filings for accounts or confirmation statements, indicating good regulatory compliance.
• Profit generation as indicated by an increase in retained earnings and the ability to pay significant dividends (£50,000 in 2024).
• The company operates within management consultancy, a sector with typically low fixed asset intensity and moderate working capital needs, which aligns with the financial profile.

4. Due Diligence Notes:

• Review underlying revenue streams and client concentration to assess operational sustainability given the small team size.
• Obtain or request more detailed financial information, including profit and loss accounts and cash flow statements, to better understand profitability and cash flow dynamics.
• Confirm that tax and VAT payments are being settled on time to avoid future liabilities or penalties.
• Investigate the nature and terms of leasing agreements (£6,529 commitment) to gauge future cash outflows.
• Validate director backgrounds and any potential governance risks, though no issues were noted in the provided data.