Company Number: 13869369

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

1. Risk Rating: LOW
   Darnick Consulting Ltd demonstrates a solid financial position with positive net assets, manageable current liabilities, and no overdue filings. The company is active, compliant with filing requirements, and operates within a stable industry classification (management consultancy).

2. Key Concerns:

• Increasing Fixed Assets vs. Declining Current Assets: Fixed assets have increased significantly from £1,378 to £82,562 in one year, while current assets decreased from £139,282 to £73,114. This shift may impact liquidity and requires examination of the nature and financing of these assets.
• Long-term Creditors Introduced: The presence of creditors falling due after more than one year (£25,974) in 2024, absent in the previous year, suggests new long-term liabilities that should be assessed for repayment terms and impact on solvency.
• Limited Operating History: Incorporated in early 2022, the company has only two years of financial data, limiting trend analysis and increasing uncertainty around operational stability and growth trajectory.

3. Positive Indicators:

• Positive Net Current Assets and Net Assets: The company maintains a healthy net current asset position (£42,548) and net assets (£99,136), indicating it can meet short-term obligations and has a sound equity base.
• Compliance and Governance: No overdue accounts or confirmation statements; filings are current, reflecting good regulatory compliance.
• Consistent Employment: Maintaining a stable workforce of 2 employees suggests controlled operational scale and potentially manageable overheads.

4. Due Diligence Notes:

• Examine Nature of Fixed Assets: Clarify the significant increase in fixed assets in 2024—are these capital expenditures tied to business expansion or reclassification of assets? Assess the financing source and expected returns.
• Review Long-term Liabilities: Obtain details on the terms, covenants, and counterparties of the long-term creditors to understand future cash flow commitments and solvency impact.
• Assess Revenue and Profitability Trends: Since only balance sheet data is available, review profit and loss accounts and cash flow statements to evaluate operational sustainability and cash generation capacity.
• Director and PSC Background Checks: Confirm no adverse records, given the key individuals hold significant control and management roles.