Company Number: 13264050

Analysis Date: 2025-07-20 18:08 UTC

1. Risk Rating: MEDIUM
   Justification: Alfriston Consulting Limited shows a significant decline in net assets and current assets year-on-year, with a reduction in cash reserves from £59,548 to £22,048 in the latest financial year. While current liabilities remain low at £847, the sharp drop in liquidity and net assets raises concerns about the company’s ability to sustain operations or absorb financial shocks. However, there is no indication of insolvency or overdue filings.

2. Key Concerns:

• Liquidity Decline: Cash decreased by over 60% (£59,548 to £22,048) within one year, which could indicate cash flow pressures.
• Net Assets Reduction: Net assets fell from £50,827 in 2023 to £21,601 in 2024, a substantial decrease that warrants scrutiny of profitability and capital structure.
• Concentration of Control: Single director and sole shareholder (Mrs Sara Elizabeth Spratt) may pose governance risks due to lack of independent oversight.

3. Positive Indicators:

• Compliance Track Record: No overdue filings for accounts or confirmation statements; filings are up to date.
• Minimal Current Liabilities: Current liabilities are very low (£847), reducing short-term solvency risk.
• Consistent Operational Base: Active company status with stable SIC classification (Solicitors). The company maintains one employee, suggesting lean operations.

4. Due Diligence Notes:

• Investigate causes of the decline in cash and net assets in 2023-2024, including profitability trends and any extraordinary expenses or write-offs.
• Review director’s financial support or loans (noted small director loans £22 in 2024) and any potential related party transactions.
• Assess client base stability and revenue streams, given the nature of legal services and sole director management.
• Confirm absence of contingent liabilities or off-balance-sheet risks not reflected in current financials.
• Evaluate governance arrangements and risk management practices given sole director/shareholder structure.