Company Number: 13149853

Analysis Date: 2025-07-29 16:02 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risk, evidenced by persistent net current liabilities, negative shareholders’ funds, and reliance on director financial support.

2. Key Concerns:

• Solvency and Negative Equity: The company has accumulated losses leading to negative shareholders’ funds of (£9,319) as of January 2024, worsening from previous years. This indicates insolvency on a balance sheet basis.
• Liquidity Deficit: Current liabilities (£12,614) substantially exceed current assets (£3,352), resulting in a working capital deficit of (£9,262), raising concerns about the company’s ability to meet short-term obligations without external support.
• Dependence on Directors: The going concern statement explicitly notes reliance on director financial support, which underscores operational fragility and potential risk if such support ceases.

3. Positive Indicators:

• Compliance with Filings: The company is up to date with both accounts and confirmation statement filings, indicating adherence to statutory requirements and no immediate regulatory compliance issues.
• Stable Share Capital: Although nominal (£100), share capital is fully issued and unchanged, suggesting no recent capital erosion through share cancellations.
• Low Fixed Asset Base: Minimal investment in fixed assets (£43) reduces risk of impairment losses and suggests a lean operational model typical of consultancy.

4. Due Diligence Notes:

• Review Director Financial Support Arrangements: Clarify nature, terms, and sustainability of financial support from directors, since going concern is dependent upon this.
• Examine Profit and Loss Trends: Obtain or request P&L statements to analyze revenue, gross margin, and expenditure trends to assess operational viability and path to profitability.
• Investigate Cash Flow: Assess recent cash flow statements or bank statements to confirm liquidity position and timing of creditor payments.
• Understand Business Model and Client Base: Given the consultancy SIC code (70229), evaluate client diversification, contract stability, and revenue predictability.
• Check for Any Director Conduct or Regulatory Issues: Although none noted in available data, verify absence of disqualifications or compliance investigations on directors.

Executive Summary:
DARFIN CONSULTANCY LIMITED exhibits high financial risk due to continued negative equity and substantial working capital deficits. While statutory filings are current and operational scale appears modest, the company’s viability heavily depends on ongoing director financial support. Further investigation into cash flows, profitability, and support arrangements is essential to fully assess sustainability.