CORE BIRCH CONSULTING LIMITED

Executive Summary

CORE BIRCH CONSULTING LIMITED shows a stable financial footing with positive net assets and compliance with all regulatory requirements. While liquidity remains adequate, the decrease in current assets and increased provisions warrant further review to ensure ongoing operational stability. Overall, the company presents a low risk profile for investors, subject to standard due diligence on contingent liabilities and business model sustainability.

CORE BIRCH CONSULTING LIMITED - Analysis Report

Company Number: 12584569

Analysis Date: 2025-07-29 13:14 UTC

1. Risk Rating: LOW
   Justification: CORE BIRCH CONSULTING LIMITED demonstrates a stable financial position with positive net current assets and net assets over the past five years. The company is compliant with filing deadlines, maintains minimal liabilities relative to assets, and operates within a micro-entity framework, limiting complexity and risk exposure.

2. Key Concerns:

• Declining current assets: Current assets decreased from £27,638 in 2021 to £18,031 in 2024, which may suggest reduced liquidity or operational cash flow concerns that warrant monitoring.
• Increasing provisions for liabilities: Provisions increased from £5,263 in 2024 compared to previous years, which could indicate future obligations or contingent liabilities that may impact financial stability.
• Limited employee base: The company reports zero average employees, implying reliance on directors or contractors; this could affect operational scalability and sustainability.

3. Positive Indicators:

• Strong working capital: Net current assets remain positive and healthy (£15,169 in 2024), indicating ability to meet short-term liabilities.
• Positive net assets and shareholders’ funds growth: Net assets increased from £4,271 in 2023 to £7,170 in 2024, suggesting retained earnings or capital injections.
• Compliance and governance: No overdue filings for accounts or confirmation statements, and the company remains active with directors and secretary properly appointed and consistent.

4. Due Diligence Notes:

• Investigate the nature and reason for increased provisions to assess potential future cash flow impacts or contingent liabilities.
• Clarify the company’s operational model given zero employees reported, including dependence on contractors or director time, and implications for business continuity.
• Review cash flow statements if available to understand liquidity trends given the decrease in current assets.
• Confirm no related-party transactions or director loans that could affect financial integrity.
• Assess client base and revenue sustainability given the company’s consultancy focus and small scale.