ADVISE CONSULTING LTD

Executive Summary

ADVISE CONSULTING LTD exhibits significant financial distress marked by negative net assets and deteriorating liquidity over the last year. While regulatory compliance is maintained, the company’s solvency risk is elevated, warranting further investigation into its debt structure and operational cash flows. Prospective investors should exercise caution and seek additional financial disclosures before engagement.

ADVISE CONSULTING LTD - Analysis Report

Company Number: 12516667

Analysis Date: 2025-07-20 17:36 UTC

1. Risk Rating: HIGH
   The company demonstrates significant solvency and liquidity concerns evidenced by negative net current assets and net liabilities in the latest financial year. The deterioration from prior periods indicates increasing financial stress.

2. Key Concerns:

• Negative net current assets of £5,720 as at 31 March 2024, compared to positive net current assets of £10,209 the previous year, signaling worsening liquidity.
• Net liabilities (negative shareholders' funds) of £5,720, though an improvement from prior years, still reflect an undercapitalized position and potential insolvency risk.
• Current liabilities increased substantially to £11,352 within one year and include a prior year figure indicating £15,635 creditors due after more than one year, raising questions about debt structure and repayment capacity.

3. Positive Indicators:

• The company is current with statutory filing deadlines for accounts and confirmation statements, suggesting compliance with basic regulatory requirements.
• Continued trading as an active private limited company since incorporation in 2020 without formal insolvency proceedings noted.
• Small micro-entity status reduces complexity and filing burden, allowing management to focus on operations.

4. Due Diligence Notes:

• Investigate the composition and due dates of current and long-term liabilities to assess refinancing risk and creditor relations.
• Review cash flow statements and management accounts to understand operational cash generation and working capital management.
• Obtain clarity on the company's business model sustainability and client base given the micro scale and negative equity position.
• Assess director’s plans for financial recovery or capital injection given ongoing losses and negative net assets.
• Confirm absence of any undisclosed related party transactions or contingent liabilities.