CARRS CONSULTING LTD

Executive Summary

Carrs Consulting Ltd is a newly formed micro-entity with positive net assets and liquidity but showing a notable decline in financial resources in its second year. Credit approval is conditional due to limited trading history and decreased asset levels, warranting close monitoring of cash flow and financial stability going forward. The company benefits from low liabilities and a manageable cost base, supporting short-term creditworthiness if trading continues steadily.

CARRS CONSULTING LTD - Analysis Report

Company Number: 14434851

Analysis Date: 2025-07-29 12:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Carrs Consulting Ltd is a micro private limited company engaged in management consultancy with a very recent incorporation date (October 2022). The company shows positive net assets and net current assets, indicating a sound liquidity position. However, the steep decline in current assets and net assets from 2023 to 2024 suggests some financial stress or reduced business activity. Given the limited trading history and small scale, credit exposure should be limited and monitored closely. Approval is conditional on continued trading evidence and stable cash flow generation.

2. Financial Strength:

• Net Assets decreased from £43,398 (2023) to £34,117 (2024), a reduction of approximately 21%.
• Fixed assets are minimal (£368 in 2024) and declining, consistent with a service-based consultancy.
• The company holds strong net current assets (£33,749 in 2024), indicating working capital remains positive despite a drop from prior year (£42,673).
• Share capital is nominal (£2), but shareholder funds align with net assets, showing no hidden liabilities on the balance sheet.

3. Cash Flow Assessment:

• Current liabilities are very low (£453 in 2024 vs. £54,873 in 2023), which may indicate a reduction in creditors or liabilities due within one year.
• The significant drop in current assets (from £97,546 in 2023 to £34,202 in 2024) could reflect reduced cash, receivables, or stock, potentially impacting liquidity.
• The company’s micro classification and exemption from audit suggest simplified reporting, so detailed cash flow data is unavailable, limiting full assessment.
• With only two employees, cost base is low, which supports managing limited cash flows.

4. Monitoring Points:

• Track quarterly or interim financial updates to confirm stabilization or improvement in current assets and net assets.
• Monitor payment patterns and creditor levels to detect any liquidity strain.
• Watch for timely filing of future accounts and confirmation statements to ensure compliance.
• Observe director and PSC activity for changes in control or governance that may affect financial stewardship.
• Evaluate operational performance and client base growth as the company matures beyond initial incorporation.