ATMAN CONSULTING LTD

Executive Summary

Atman Consulting Ltd, a micro-entity IT consultancy, has experienced a notable deterioration in financial health with net liabilities reported in the latest accounts, raising solvency and liquidity concerns. While regulatory compliance is current, the company's limited scale and worsening working capital position suggest elevated risk. Further investigation into cash flows and management plans is recommended to gauge operational sustainability.

ATMAN CONSULTING LTD - Analysis Report

Company Number: 13636248

Analysis Date: 2025-07-29 17:39 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in its financial position in the latest year, with net current liabilities of £4,138 and net negative shareholders’ funds of £4,318. This indicates solvency concerns and potential inability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets: The company moved from small positive net assets (£15) in previous years to a net liability position in 2024, signaling erosion of equity and possible financial distress.
• Working Capital Deficit: Current liabilities (£17,871) exceed current assets (£7,281) markedly, indicating liquidity issues and potential cash flow constraints.
• Limited Scale and Resources: As a micro-entity with only one employee (the director), the company may lack operational resilience and capacity to absorb financial shocks.

3. Positive Indicators:

• Compliance with Filings: The company’s accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Consistent Business Activity: Operating since 2021 in IT consultancy (SIC 62020), with ongoing activity and no indication of dormant status or administration.
• Small Entity Reporting: Use of micro-entity accounts reduces administrative burden and costs, appropriate for its scale.

4. Due Diligence Notes:

• Examine Reasons for Financial Decline: Investigate the factors driving the sharp drop in net assets and working capital deficit in 2024, including revenue, expenses, and debtor collectability.
• Cash Flow Analysis: Review cash flow statements or bank records if available to assess liquidity management and whether the company can meet immediate obligations.
• Director and Governance Review: Confirm the background and capacity of the sole director, including any potential related party transactions or personal guarantees.
• Future Financial Projections: Request management forecasts or plans that address the current negative equity situation and intended recovery strategies.