BRP CONSULTING LTD

Executive Summary

BRP Consulting Ltd demonstrates concerning financial deterioration in the latest year, particularly regarding cash reserves and net assets, which raises high liquidity and solvency risks. While regulatory compliance is satisfactory, the company’s operational scale and financial position warrant close scrutiny. Investors should conduct further due diligence on recent financial performance and operational risks before engagement.

BRP CONSULTING LTD - Analysis Report

Company Number: 12563003

Analysis Date: 2025-07-20 16:27 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits a significant decline in financial position over recent years, with net assets sharply decreasing from £10,037 in 2023 to just £855 in 2024. Cash reserves have plummeted from £23,514 to £682, indicating severe liquidity stress. The minimal share capital and reliance on a single director further elevate risk.

2. Key Concerns:

• Liquidity Risk: Cash reserves have reduced drastically by over 97% year-on-year, potentially impairing the company's ability to meet short-term obligations despite current liabilities also decreasing.
• Erosion of Net Assets: A steep decline in net current assets from £8,644 in 2023 to £855 in 2024 suggests operational or financial difficulties that may threaten solvency if the trend continues.
• Operational Concentration: The company operates with a single director and one employee, which may present operational risk and challenges in governance, scalability, and succession planning.

3. Positive Indicators:

• Compliance: The company is current with all filings including accounts and confirmation statements, signaling good regulatory compliance and governance discipline.
• No Audit Requirement: As a small company with exemption from audit, this reduces administrative burden and costs.
• No Debt Overhang: Current liabilities have substantially decreased, and there are no long-term liabilities disclosed, which may reduce insolvency risk in the short term.

4. Due Diligence Notes:

• Investigate the cause of the sharp reduction in cash and net assets between 2023 and 2024, including any unusual or one-off expenditures or revenue shortfalls.
• Review cash flow statements and management accounts for the current year to assess if the liquidity situation has stabilized or worsened.
• Consider the impact of the small workforce and single director on business continuity and operational resilience.
• Confirm if any related party transactions or contingent liabilities exist that could affect financial stability.
• Assess the client concentration and revenue trends to understand sustainability of income streams.