CREST CONSULTING SERVICES LTD

Executive Summary

Crest Consulting Services Ltd is currently in a weak financial position characterized by negative net assets and working capital deficits, undermining its ability to service debt. The company’s micro status and sole director control add concentration risk, and recent financial trends suggest deterioration rather than recovery. Consequently, the company is not recommended for credit approval without substantial additional security or assurance.

CREST CONSULTING SERVICES LTD - Analysis Report

Company Number: 13060158

Analysis Date: 2025-07-20 13:30 UTC

1. Credit Opinion: DECLINE
   Crest Consulting Services Ltd exhibits a deteriorating financial position with persistent negative net assets and working capital deficits, culminating in a net liability position of £3,890 as of 31-Dec-2023. The company’s inability to maintain positive net current assets and shareholders’ funds over the last financial year raises substantial concerns about its capacity to service debt obligations reliably. The limited scale (micro entity), absence of diversified capital, and sole director’s full control without apparent external financial backing further weaken creditworthiness. Given these factors, the company presents a high credit risk profile unsuitable for new credit facilities without significant mitigating information or guarantees.

2. Financial Strength:
   The balance sheet reveals a small fixed asset base (£501) and current assets of £8,068, which are insufficient to cover current liabilities of £11,979, resulting in a negative net current asset position of £3,911. Net assets and shareholders’ funds have swung from positive in 2022 (£3,690) to negative in 2023 (£-3,890), indicating recent losses or write-downs. The company’s share capital is nominal (£1.00), indicating minimal equity buffer. The volatility in net assets and liabilities suggests fragile financial strength and potential erosion of capital. The company’s micro status limits disclosure but the trends suggest weak capitalization and balance sheet vulnerability.

3. Cash Flow Assessment:
   Working capital is negative, reflecting a liquidity shortfall that may impair the company’s ability to meet short-term obligations as they fall due. The absence of detailed profit and loss data or cash flow statements limits precise liquidity analysis, but the balance sheet position signals constrained cash resources and possible reliance on director funding or short-term credit. The company’s ability to generate positive operating cash flow is questionable given the net asset decline and the increase in current liabilities. Without improvement in working capital management or access to external liquidity, the company’s cash flow position remains precarious.

4. Monitoring Points:

• Monitor upcoming accounts and confirmation statements for any further deterioration in net assets or liquidity.
• Track changes in current liabilities and whether the company can reduce or restructure short-term debts.
• Watch for director loans or capital injections that may temporarily improve solvency.
• Assess operational performance indicators if available to gauge profitability trends.
• Review any changes in ownership or management that might affect financial strategy.