Company Number: 13041344

Analysis Date: 2025-07-20 11:02 UTC

1. Risk Rating: MEDIUM
   CMD Consultancy Ltd displays some concerns related to solvency, reflected by a negative net current assets position as of the latest financial year end. However, the company has no overdue filings and maintains active status, indicating compliance with regulatory requirements. The relatively small scale of operations as a micro-entity and absence of employees suggest limited operational complexity but also potential vulnerability to cash flow fluctuations.

2. Key Concerns:

• Solvency Pressure: The company’s net current assets have shifted from positive (£1,977 in 2022) to negative (£-2,785 in 2023), implying current liabilities exceed current assets. This may indicate difficulties in meeting short-term obligations.
• No Employees: The absence of employees over multiple years could suggest limited operational capacity or reliance on directors or contractors. This might constrain business scalability and sustainability.
• Negative Shareholders’ Funds: The equity position has turned negative, matching the net current liabilities, which raises concerns about capital adequacy and financial resilience.

3. Positive Indicators:

• Compliance and Timely Filings: The company is up to date with both accounts and confirmation statement filings, demonstrating good governance and regulatory compliance.
• Stable Ownership and Management: Directors and persons with significant control have been consistent since incorporation, suggesting stable leadership without recent governance disruptions.
• Micro-Entity Status: The company operates within micro-entity thresholds, which reduces regulatory burden and may indicate a lean cost structure.

4. Due Diligence Notes:

• Cash Flow Analysis: Examine underlying cash flows and creditor terms to assess liquidity beyond the balance sheet snapshot, including any off-balance sheet liabilities or contingent exposures.
• Business Model and Revenue Streams: Investigate the company’s income sources, client base, and contracts to evaluate operational sustainability given the lack of employees.
• Director Financial Support: Clarify whether directors provide financial support or guarantees, especially given the negative equity position.
• Future Projections and Plans: Review any management forecasts or strategic plans to understand how solvency and liquidity issues will be addressed.