ANNET BUSINESS CONSULTANCY LIMITED

Executive Summary

Annet Business Consultancy Limited shows a weakening financial position in the latest year with reduced net assets and working capital, alongside significant director advances that may pose liquidity risks. The company remains compliant with filing requirements and retains positive net current assets, but the concentrated ownership and limited financial disclosures warrant further review for operational sustainability.

ANNET BUSINESS CONSULTANCY LIMITED - Analysis Report

Company Number: SC679788

Analysis Date: 2025-07-20 13:31 UTC

1. Risk Rating: MEDIUM
   The company exhibits moderate solvency and liquidity risks primarily due to a significant reduction in current assets and net assets in the most recent financial year, coupled with director advances that represent a substantial related-party exposure.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets decreased from £40,470 in 2022 to £19,106 in 2023, and net current assets fell from £43,034 to £17,732, indicating a deterioration in financial strength.
• Director Advances: Interest-free loans to the director amounting to £97,088 remain on the balance sheet, repayable on demand, representing a material related-party transaction that could affect liquidity and creditor priority.
• Concentration of Control: The single director and 75-100% shareholder, Mr. Moray Ross Melhuish, controls all voting rights and appointments, limiting governance oversight and increasing operational risk.

3. Positive Indicators:

• No Overdue Filings: Annual accounts and confirmation statements are up to date, reflecting regulatory compliance and good governance in reporting.
• Positive Net Current Assets: Despite the decline, current assets exceed current liabilities by £17,732, providing some liquidity cushion.
• Micro-Entity Status: The company’s small scale and low fixed assets reduce complexity and may limit exposure to large operational risks.

4. Due Diligence Notes:

• Review the nature and terms of director advances, including repayment plans and impact on cash flows.
• Investigate the reasons behind the sharp decline in current assets and net assets between 2022 and 2023, including any one-off or operational factors.
• Assess the company’s revenue streams and profitability (information currently unavailable) to evaluate ongoing sustainability.
• Confirm there are no undisclosed contingent liabilities or related-party transactions beyond director advances.
• Consider governance practices given the single director and sole controlling shareholder structure.