CLARE RAMSARAN CONSULTING LIMITED

Executive Summary

Clare Ramsaran Consulting Limited exhibits signs of financial distress with negative equity and a working capital deficit, reflecting poor liquidity and erosion of financial strength over the last year. The company’s limited size and resources constrain its ability to service additional credit, leading to a recommendation to decline credit facilities at this stage. Close monitoring of cash flow and operational turnaround is essential before reconsidering credit support.

CLARE RAMSARAN CONSULTING LIMITED - Analysis Report

Company Number: 12929357

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

1. Credit Opinion: DECLINE
   Clare Ramsaran Consulting Limited shows a deteriorating financial position with negative net assets of £2,070 as of 31 October 2023, down from positive shareholders’ funds of £10,630 in 2022. The company’s current liabilities exceed current assets by £2,431, indicating a working capital deficiency and potential liquidity stress. The lack of profitability disclosure and the rapid depletion of cash or current assets raise concerns about the company’s ability to service debt or credit facilities without additional capital injections or operational changes. Given the micro size and limited financial resources, extending credit poses elevated risk.

2. Financial Strength: Weakening Balance Sheet
   The company’s net assets have swung from positive to negative within one year, primarily due to a sharp reduction in current assets (from £11,772 to £1,213) and an increase in current liabilities (from £2,391 to £3,644). Fixed assets are minimal and declining, reflecting limited long-term investment. The equity erosion suggests losses incurred in the latest financial year, weakening the cushion available against creditors and reducing financial resilience.

3. Cash Flow Assessment: Negative Liquidity Position
   Current liabilities exceed current assets, resulting in a net current liability position of £2,431, which signals potential difficulty meeting short-term obligations as they fall due. The large drop in current assets, likely cash or receivables, may indicate cash flow problems or delayed collections. With only one employee (the director) and no indication of external financing, the company appears to have limited working capital and low liquidity, increasing the risk of payment delays or default.

4. Monitoring Points:

• Monthly cash flow and receivables collections to assess liquidity trends.
• Timely filing of next accounts and confirmation statement to ensure compliance and transparency.
• Any changes in current liabilities levels or new borrowing that might affect solvency.
• Operational performance to see if revenues improve or losses persist, impacting equity further.
• Director’s plans for recapitalization or restructuring to restore financial stability.