Company Number: 12992637

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: LOW
   B.I.C Advisory Ltd demonstrates strong solvency and liquidity positions with consistently positive net current assets and shareholders' funds. The company is up to date on filings and shows no signs of financial distress or regulatory non-compliance.

2. Key Concerns:

• Reliance on cash: Cash constitutes the majority of current assets (£617k of £629k), which may indicate limited diversification of working capital.
• Fluctuating debtors: Trade debtors reduced significantly from £96k in 2023 to £12k in 2024, which could reflect changes in client payment terms or business volume.
• Taxation payables: Creditors include a significant amount of taxation and social security liabilities (£196k), which should be monitored for timely settlement.

3. Positive Indicators:

• Strong liquidity: The company holds substantial cash reserves relative to current liabilities (cash £617k vs creditors £198k), indicating good ability to meet short-term obligations.
• Positive net current assets and shareholders’ funds increased year-on-year (£436k in 2024 vs £322k in 2023), reflecting growth in retained earnings and overall financial strength.
• Compliance: All statutory filings are up to date with no overdue accounts or confirmation statements, suggesting good governance and regulatory compliance.
• Stability: Directors have been in place since incorporation without any public disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the nature and timing of taxation and social security liabilities to ensure they are properly managed and do not pose payment risks.
• Understand the reasons behind the significant reduction in trade debtors to assess if this reflects improved collection or a drop in business volume.
• Review the company's revenue trends and client base to confirm operational sustainability given the relatively small share capital (£200) and limited employee count (2).
• Confirm that the company’s exemption from audit is appropriate and that financial statements provide an accurate reflection of the company’s financial position.