Company Number: 13123110

Analysis Date: 2025-07-20 15:10 UTC

1. Credit Opinion: DECLINE
   Consulting RG Ltd's latest financials reveal a sharp deterioration in liquidity and equity position, moving from positive net current assets and shareholders’ funds in previous years to significant net current liabilities (-£5,472) and negative equity (-£5,425) as of April 2024. This indicates the company is currently unable to meet short-term obligations from available current assets and is technically insolvent on a balance sheet basis. The absence of profitability disclosures and a declining cash balance (£794 from £8,346) raise concerns about ongoing operational cash flow sufficiency. Given the material weakening of financial health within a short period, without clear evidence of turnaround plans or new capital injection, the company’s ability to service debt or honor credit commitments is doubtful at present.

2. Financial Strength:
   The balance sheet shows a progressive erosion of financial strength over the past three years. Shareholders’ funds declined from £23,463 in 2021 to a negative £5,425 in 2024. Current liabilities (£9,519) now exceed current assets (£4,047), resulting in a working capital deficit. Fixed assets are minimal (£147), indicating limited tangible collateral value. The capital base is weak, with only £100 in share capital and accumulated losses reflected in the profit and loss reserves. This suggests limited buffer against adverse business conditions and restricted ability to leverage additional financing.

3. Cash Flow Assessment:
   Cash on hand has diminished markedly from £38,524 in 2021 to just £794 in 2024, implying severe cash flow strain. Debtors remain constant at £3,253 but are insufficient to cover nearly £9,519 in current liabilities. Negative net current assets highlight potential liquidity challenges for meeting immediate payables. The company employs only two people, consistent with a micro/small scale operation, which may limit operational complexity but also scale. Without detailed profit and loss data, it is difficult to assess cash generation, but the cash depletion trend signals weak operating cash flows or possibly poor working capital management.

4. Monitoring Points:

• Monthly cash flow and liquidity position to detect further deterioration or improvement.
• Debtor collection efficiency and aging to ensure receivables are realisable.
• Changes in creditors and any payment delays or disputes.
• Any capital injections or restructuring plans disclosed by management.
• Upcoming filing of full profit and loss accounts for clarity on operational performance.
• Director conduct and related party transactions given sole control by Mr. Gibson.