CRITICAL VECTOR CONSULTING LTD

Executive Summary

Critical Vector Consulting Ltd shows signs of financial strain with a negative working capital position and a significant drop in net assets over the past year. While regulatory compliance is maintained and the sole director’s financial support is positive, liquidity and leverage risks warrant careful further investigation before investment. The company operates in a potentially resilient IT consultancy sector but requires improved financial stability for sustained operations.

CRITICAL VECTOR CONSULTING LTD - Analysis Report

Company Number: 13058258

Analysis Date: 2025-07-20 12:51 UTC

1. Risk Rating: MEDIUM
   The company shows signs of solvency challenges with net current liabilities and a significant decline in net assets from prior years. However, it remains active with no overdue filings and a director who has provided financial support, mitigating immediate distress signals.

2. Key Concerns:

• Negative net current assets (£-3,939) as at 31 March 2024 indicate liquidity stress and potential difficulty meeting short-term obligations.
• Sharp decline in net assets to £1,091 from £44,595 the prior year suggests erosion of equity and financial stability.
• High secured hire purchase debt (£28,302) relative to net assets increases leverage risk and potential cash flow burden.

3. Positive Indicators:

• No overdue statutory filings or confirmation statements, indicating compliance with regulatory requirements.
• Director ownership (75-100%) and active involvement with ongoing financial advances suggest committed management support.
• Operating in IT consultancy, a sector with potential for stable demand and scalability.

4. Due Diligence Notes:

• Investigate causes behind large drop in net assets and net current assets deterioration—specifically, changes in debtor balances and creditor management.
• Review cash flow statements and working capital management to assess short-term liquidity risk more fully.
• Confirm terms and covenants related to hire purchase liabilities and director loans to evaluate refinancing or repayment risk.
• Assess client base stability and revenue trends given limited financial disclosures and absence of profit and loss details in the accounts.