BASTICO CONSULTING LTD

Executive Summary

BASTICO CONSULTING LTD currently maintains solvency and meets regulatory requirements but shows signs of financial strain including declining net assets and reduced liquidity. The company’s reliance on director loans and increasing short-term liabilities warrant further scrutiny. Overall, the business appears operationally lean but requires detailed examination of financial performance and funding structure to assess sustainability.

BASTICO CONSULTING LTD - Analysis Report

Company Number: 13235572

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: MEDIUM
   BASTICO CONSULTING LTD shows moderate financial stability but with some concerning trends. While the company remains solvent and compliant with filing deadlines, declining net assets and current assets suggest increasing financial pressure. The absence of employees and limited cash reserves further temper confidence in operational resilience.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £9,665 in 2023 to £4,779 in 2024, indicating erosion of equity and potential profitability or asset value issues.
• Reduced Liquidity: Cash balances have nearly halved from £4,129 to £2,527, and current liabilities more than doubled, reducing net current assets from £7,540 to £2,969, which could impact the company’s ability to meet short-term obligations smoothly.
• Director Loans and Creditors: The company shows loans from directors amounting to £3,288 in 2024 (up from a negative figure in 2023), raising questions about reliance on director funding and increasing creditor exposure.

3. Positive Indicators:

• Filing Compliance: The company is up to date with accounts and confirmation statement filings, indicating good regulatory compliance.
• No Audit Requirement: As a small company with exemption from audit, administrative burden and costs are minimized.
• Stable Control and Governance: The director and PSCs have maintained consistent control since incorporation, with no disqualifications or governance red flags reported.

4. Due Diligence Notes:

• Investigate the cause of significant net asset decline and reduced liquidity: Review profit and loss trends, contract performance, and cash flow statements to understand the financial deterioration.
• Clarify the nature, terms, and sustainability of director loans and other creditors to assess financial risk and potential solvency impact.
• Assess operational model viability given zero reported employees and reliance on management consultancy activities; understand how services are delivered and revenue generated.
• Review any contingent liabilities or off balance sheet obligations not evident in current filings.