CHILD FIRST CONSULTANCY LTD.

Executive Summary

Child First Consultancy Ltd. has demonstrated a notable improvement in financial position over the latest year, with strengthened liquidity and solvency metrics and full compliance with statutory filings. However, the company remains small and closely held, with limited operational scale and some liquidity concerns related to cash flow timing and increased debtors. Further investigation into revenue, debtor quality, and director transactions is recommended to fully assess ongoing stability and operational sustainability.

CHILD FIRST CONSULTANCY LTD. - Analysis Report

Company Number: 13525547

Analysis Date: 2025-07-29 18:27 UTC

1. Risk Rating: LOW
   The company shows a strong improvement in net current assets and net assets in the latest financial year, indicating an enhanced solvency position. There are no overdue filings or signs of regulatory non-compliance. The scale and simplicity of the business reduce operational complexity and risk.

2. Key Concerns:

• Concentration risk due to a single director who also holds 75-100% ownership, which could impact governance and decision-making transparency.
• Limited operational scale with no employees and modest turnover (inferred from exemption and size), potentially affecting sustainability and growth prospects.
• Significant drop in cash balance from prior year (£31k to £13k) despite increase in debtors, which may indicate timing issues in cash conversion and potential short-term liquidity risk.

3. Positive Indicators:

• Strong recovery in net current assets from £646 in 2023 to £36,784 in 2024, reflecting improved liquidity and solvency.
• No overdue statutory accounts or confirmation statements, demonstrating compliance with filing requirements and regulatory obligations.
• The company operates in a niche SIC code (88990) related to social work activities, which may have stable demand and potential for grant or contract funding.

4. Due Diligence Notes:

• Review detailed turnover and profit & loss figures to confirm revenue sources and profitability trends, as they are not disclosed in the summary.
• Investigate the nature and collectability of the increase in trade debtors (£6,883 to £35,250) to assess credit risk and cash flow reliability.
• Assess director's loan account movements and arrangements to understand related-party transactions and any potential financial reliance on the director.
• Confirm business model sustainability given the lack of employees and the company's reliance on the director.