CARBON TRANSITION ANALYTICS LIMITED

Executive Summary

Carbon Transition Analytics Limited is a very small environmental consulting entity that has recently improved its financial position from net liabilities to modest net assets. While compliance and ownership stability are positive, the company’s limited scale and historically weak liquidity present medium solvency and operational risk. Further due diligence on cash flows and business model sustainability is recommended before investment.

CARBON TRANSITION ANALYTICS LIMITED - Analysis Report

Company Number: 14722137

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: MEDIUM
   The company shows recovery from a previous negative net asset position to a modest positive net asset value. However, the absolute size of net assets and current assets remains small, indicating limited financial buffer. The micro-entity status and small scale suggest higher vulnerability to cash flow volatility.

2. Key Concerns:

• Historically negative net current assets and net liabilities in prior year (2024) indicate past liquidity stress that was only recently reversed.
• Very low absolute current asset figure (£26,003) limits operational cash reserves and flexibility.
• Limited employee base (2 staff) and small scale may constrain operational stability and growth potential.

3. Positive Indicators:

• Transition from net liabilities (£28,996) to net assets (£7,718) within one year suggests improving financial position and creditor management.
• No overdue filings for accounts or confirmation statements indicate compliance discipline.
• Ownership and control concentrated with a single experienced director, which may facilitate swift decision-making.

4. Due Diligence Notes:

• Review cash flow statements (if available) to assess operational cash generation given limited current assets.
• Confirm nature and maturity profile of current liabilities to evaluate short-term solvency risk.
• Investigate business model sustainability and client base given micro scale and recent financial volatility.
• Monitor director and shareholder stability given concentration of control and recent director resignation.