CPM CONSULT LTD

Executive Summary

CPM Consult Ltd, a micro-entity operating in quantity surveying and management consultancy, shows a sound financial position with positive net assets and no filing delinquencies. However, the recent decline in net current assets and minimal share capital warrant closer examination of cash flow and profitability metrics. Overall, the company appears operationally stable with effective governance but would benefit from more detailed financial disclosure for a comprehensive risk assessment.

CPM CONSULT LTD - Analysis Report

Company Number: 13758050

Analysis Date: 2025-07-29 19:10 UTC

1. Risk Rating: LOW
   CPM Consult Ltd demonstrates a solid net asset position relative to its size, with positive working capital and no overdue filings. The company’s financials indicate stable operational footing with no apparent solvency or liquidity concerns.

2. Key Concerns:

• Declining Net Current Assets: Net current assets dropped from £125,064 in 2023 to £66,508 in 2024, which may suggest tightening liquidity that warrants monitoring.
• Small Share Capital: With only £200 in share capital, the company’s equity base is minimal, potentially limiting its ability to absorb significant losses or fund expansion internally.
• Limited Financial Disclosure: As a micro-entity, CPM Consult Ltd files abbreviated accounts with no profit and loss statements, restricting visibility into profitability and cash flow trends.

3. Positive Indicators:

• Strong Working Capital: Despite the decline, net current assets remain positive and substantial relative to the company’s micro category status, indicating it can meet short-term obligations.
• No Overdue Filings: The company is current on all statutory filings, including accounts and confirmation statements, reflecting good governance and regulatory compliance.
• Steady Operational Growth: Employee headcount increased from 3 to 5 over the year, suggesting ongoing business activity and potential growth.
• Stable Ownership and Management: Both directors have maintained consistent roles since incorporation, with clear control and no indications of disqualification or governance issues.

4. Due Diligence Notes:

• Review Profitability and Cash Flow: Obtain or request more detailed financial information beyond micro-entity filings to assess profit margins, cash generation, and operational efficiency.
• Investigate Reason for Declining Net Current Assets: Analyze working capital components (debtors, creditors, cash) to understand the drivers behind the reduction and assess if this trend is temporary or indicative of underlying issues.
• Evaluate Client and Contract Stability: Given the company’s industry (quantity surveying and management consultancy), understanding contract pipeline, client concentration, and payment terms is critical for assessing operational sustainability.
• Confirm Directors’ Backgrounds: While no disqualifications appear, a standard background check on directors’ past conduct and other business interests would be prudent.