DAVID HUMPHREYS CONSULTING LTD

Executive Summary

David Humphreys Consulting Ltd is a small, active consulting company with positive net assets and no compliance issues. However, a notable decline in net assets and working capital, combined with substantial tax liabilities, introduces moderate solvency and liquidity concerns. Further financial and operational due diligence is recommended to fully assess cash flow stability and ongoing business viability.

DAVID HUMPHREYS CONSULTING LTD - Analysis Report

Company Number: 13267185

Analysis Date: 2025-07-20 17:47 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and working capital, indicating solvency. However, a significant decline in net assets and net current assets from 2023 to 2024 suggests emerging financial pressure. The outstanding tax and social security liabilities are sizable relative to cash balances, which could strain liquidity. The company is young (incorporated 2021) and small, which adds some operational risk.

2. Key Concerns:

• Declining net assets and net current assets between 2023 (£8,063 and £7,142 respectively) and 2024 (£4,393 and £2,924 respectively) indicating potential erosion of financial buffer.
• Large taxation and social security creditor (£12,038 in 2024), exceeding trade creditors, which may suggest cash flow timing issues or tax payment delays.
• Concentration of control with two directors who are also the main employees; limited scale and diversification could impact operational stability.

3. Positive Indicators:

• Positive net current assets and net assets at year-end 2024 demonstrate solvency and ability to meet current liabilities.
• No overdue filings or compliance issues reported; the company maintains timely statutory compliance.
• Increasing tangible fixed assets indicate investment in operational capacity.
• The company is exempt from audit as a small entity but has prepared accounts in accordance with UK GAAP, demonstrating governance attention.

4. Due Diligence Notes:

• Review cash flow statements or management accounts to assess cash flow trends and ability to meet tax liabilities on time.
• Clarify nature and timing of tax and social security liabilities to evaluate any risk of penalties or enforcement action.
• Confirm turnover and profitability trends, as turnover is not disclosed in the accounts summary; this impacts assessment of operational sustainability.
• Investigate customer concentration and contract stability given the small scale and consultancy nature of the business.
• Assess director and shareholder backgrounds for any potential conflicts or governance risks.