Company Number: 14216778

Analysis Date: 2025-07-20 18:46 UTC

1. Credit Opinion: DECLINE
   CONSULTING MIND LTD exhibits significant financial distress as evidenced by its negative current assets and current liabilities at the latest year-end, indicating a liquidity crunch. The company’s net current assets have deteriorated from a positive £6,759 in 2023 to a marginal £181 in 2024, reflecting a near breakeven working capital position but with worrying negative figures in absolute terms. This undermines its ability to reliably meet short-term obligations and thus service debt. Given the lack of audit and comprehensive financial disclosures typical of micro-entities, the risk profile is elevated with limited transparency. The company is very small with 1 employee and limited operational scale, which constrains resilience and financial flexibility.

2. Financial Strength:
   The balance sheet shows a dramatic weakening over the 2023-2024 period. Current assets shifted from £17,701 positive to a negative £26,247, while current liabilities increased from £10,942 to £26,428, resulting in a net current asset position close to zero. Net assets and shareholders’ funds have fallen correspondingly from £6,759 to £181, indicating almost complete erosion of equity capital. There are no fixed assets reported, so the company relies entirely on working capital. This fragile equity base and lack of tangible net assets reduce the company’s buffer against operational or market shocks.

3. Cash Flow Assessment:
   The negative current asset figure suggests a working capital deficit and potential cash flow difficulties. Without detailed cash flow statements or profit & loss data, it is difficult to confirm operational cash generation, but the deterioration in current asset and liability balances points to liquidity stress. The company’s ability to maintain operations and meet short-term creditors is questionable. The presence of a single employee further emphasizes limited operational capacity to improve cash flows or access additional resources quickly.

4. Monitoring Points:

• Monitor future filing of accounts for any improvement or further deterioration in working capital and net assets.
• Watch for changes in current liabilities levels and any short-term borrowing that could exacerbate liquidity issues.
• Track turnover and profitability trends if available, to assess operational viability.
• Review director and ownership stability, especially given the company’s small size and concentration of control.
• Ensure timely filing compliance to avoid regulatory sanctions that could compound financial strain.