BRITANNICA MANAGEMENT AND CONSULTANCY LIMITED

Executive Summary

Britannica Management and Consultancy Limited exhibits a substantial decline in financial health over the last year, with negative net assets and working capital posing significant solvency and liquidity risks. While filing compliance is satisfactory and ownership is clearly defined, the rapid deterioration warrants careful scrutiny of liabilities and operational viability. Further investigation into the underlying causes of financial distress is recommended before any investment consideration.

BRITANNICA MANAGEMENT AND CONSULTANCY LIMITED - Analysis Report

Company Number: 14403873

Analysis Date: 2025-07-29 19:23 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in net current assets and net assets over the last financial year, moving from positive net assets of £2,900 in 2023 to negative £12,318 in 2024, indicating potential solvency and liquidity concerns.

2. Key Concerns:

• Negative Net Current Assets and Net Assets: A large increase in current liabilities to £17,871 against current assets of only £6,333 suggests short-term liquidity stress.
• Rapid Financial Deterioration: The swing from positive equity to substantial negative shareholders' funds within a single year raises questions about operational sustainability and recent losses or liabilities incurred.
• Small Scale and Limited Resources: As a micro-entity with only two employees and minimal assets, the company has limited capacity to absorb financial shocks or scale operations.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is up to date with annual accounts and confirmation statement filings, showing no compliance or governance issues to date.
• Clear Ownership and Control: Single controlling shareholder/director with full voting rights facilitates quick decision-making.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the cause and nature of increased current liabilities and whether these are trade payables, accrued expenses, or short-term loans.
• Review recent profit and loss details (not provided here) to understand operational losses or extraordinary expenses leading to net asset erosion.
• Assess cash flow statements or bank balances for liquidity trends beyond balance sheet snapshots.
• Confirm the director’s plans to restore solvency and the company's business model viability given current financial stress.
• Consider any off-balance sheet liabilities or contingent liabilities not reflected in these figures.