Risk Analysis Report: CVM People Limited

1. Risk Rating: MEDIUM

The company demonstrates adequate liquidity and improving short-term solvency, but significant concerns around governance transparency, contradictory ownership disclosures, volatile asset movements, and a long-term erosion of the net asset base warrant a medium risk classification. The business appears financially stable at present but presents several red flags that require investigation before institutional investment.

2. Key Concerns

Concern 1: Contradictory PSC Ownership Structure

The People with Significant Control register lists both Januz Holdings Ltd and Q People Solutions Limited as owning "more than 75% of the company's shares" with "more than 75% of the voting rights" and the right to appoint/remove directors. This is mathematically impossible and suggests either a filing error, outdated records, or a more serious governance issue. Meanwhile, the filed accounts state Q People Solutions Limited is the ultimate controlling party by virtue of 100% ownership. The inconsistency between the PSC register and the accounts needs resolution.

Concern 2: Significant Long-Term Erosion of Net Assets

The company's net assets have declined substantially from their peak. Net assets stood at approximately £1.58M in 2020 and have fallen to £680K by January 2025 – a decline of roughly 57%. While the most recent year shows modest improvement (£646K to £680K), the overall trajectory raises questions about what drove the earlier decline and whether the business model has fundamentally changed.

Concern 3: Extreme Asset Volatility and Zero Employees

Total assets swung from £3.04M (2019) to £729K (2022), back up to £1.8M (2024), then down to £1.2M (2025). These are dramatic movements for a management consultancy. The accounts also disclose zero employees (including directors) for both 2024 and 2025. For an active consultancy generating sufficient activity to support these asset levels, the absence of any employees on the payroll is unusual and raises questions about how the business is actually operating, whether services are subcontracted, and whether there are related-party arrangements not visible in these abridged accounts.

3. Positive Indicators

Indicator 1: Strong and Improving Liquidity

Cash at bank increased from £448K (2024) to £659K (2025), and current liabilities decreased substantially from £1.15M to £543K in the same period. Net current assets improved to £679K, providing a reasonable working capital buffer. The company appears to have no immediate liquidity crisis.

Indicator 2: Filing Compliance

Accounts and confirmation statements are filed and up to date with no overdue items. The company has maintained active status since 2013 with no indications of insolvency proceedings.

Indicator 3: Minimal Debt Structure

The balance sheet shows no long-term creditors, and the entire liability base (£543K) falls within current liabilities. With cash of £659K against current liabilities of £543K, the current ratio exceeds 1.2:1, indicating the company can meet its near-term obligations from cash alone.

4. Due Diligence Notes

Ownership and Control

• Urgently clarify the PSC register discrepancy. Both Januz Holdings Ltd and Q People Solutions Limited cannot hold 75%+ ownership and voting rights simultaneously. Determine which entity actually controls the company and whether the PSC register requires updating.
• Investigate Januz Holdings Ltd and Q People Solutions Limited – their financial health, jurisdiction, and any other interests. As the ultimate controlling party, Q People Solutions' financial position could materially affect CVM People.
• Note that individual PSCs (Hans Dixon and Alan Shaun Finlay) hold 25-50% of shares, but the corporate PSCs claim 75%+ - understand the full ownership waterfall.

Financial Performance

• Request full profit and loss accounts – the company has opted to file abridged accounts without a P&L, which is legally permissible but severely limits visibility into revenue, costs, and profitability trends.
• Investigate the significant drop in debtors from £1.35M (2024) to £563K (2025) – determine whether this represents successful collection, reduced revenue, or write-offs.
• Understand what drove the large swings in total assets between 2019-2025. Was there a significant contract win/loss? Restructuring? Related-party transactions?
• Clarify why zero employees are reported for an active consultancy. Are directors remunerated through dividends only? Are consultants engaged through intermediaries?

Operational Model

• The company's website describes services in "data and technology" consultancy and "talent acquisition" – reconcile this with the SIC code 70229 (management consultancy) and the zero-employee disclosure.
• Five directors are listed but only two signed the accounts. Understand the role and involvement of each director.
• The registered address differs between the overview (Floor 2 Grosvenor House, Basing View) and the accounts (Unit 11 Basepoint Business Centre, Stroudley Road). Confirm the correct registered office.

Related Parties

• Given the corporate PSC structure and multiple directors with shared surnames (Dixon, Finlay), map all related-party relationships and transactions, which are not disclosed in the abridged accounts.