ENOCH CONSULTING LTD

Executive Summary

ENOCH CONSULTING LTD is a very recently incorporated IT consultancy with minimal capitalization and a balance sheet showing an almost break-even position on liquidity, which poses a high solvency and liquidity risk. While the company complies with filing requirements and has a straightforward governance structure, the absence of operating history and very limited net assets raise significant concerns about its financial stability and operational sustainability. Further investigation into liabilities, cash flow forecasts, and business prospects is essential before considering investment exposure.

ENOCH CONSULTING LTD - Analysis Report

Company Number: 14850583

Analysis Date: 2025-07-29 18:04 UTC

1. Risk Rating: HIGH

Justification: The company’s financial data indicates an extremely thin equity base with net assets of only £2, and current liabilities almost equal to current assets (cash £21,051 vs liabilities £21,049), implying no margin for operational or financial shocks. As a newly incorporated entity with less than one full year of trading, it lacks a track record to support sustainability or cash flow resilience.

2. Key Concerns:

• Extremely low net assets (only £2), indicating minimal capitalization and limited financial buffer.
• Current liabilities nearly equal to cash holdings, suggesting tight liquidity and potential difficulty meeting obligations if cash inflows slow.
• Lack of historical financial performance data due to recent incorporation, making it difficult to assess business viability or operational stability.

3. Positive Indicators:

• Company is active and current with all filings, including accounts and confirmation statements, demonstrating compliance with regulatory requirements.
• Directors and shareholders appear aligned, with two individuals holding 25-50% shares and voting rights each, indicating clear control and governance structure.
• Operating in IT consultancy (SIC 62020), a sector with generally low capital expenditure and scalable revenue potential.

4. Due Diligence Notes:

• Verify the nature and timing of current liabilities to assess cash flow timing risk and whether any liabilities are overdue or at risk of crystallization.
• Obtain management accounts or cash flow forecasts to evaluate ongoing liquidity beyond the balance sheet snapshot.
• Understand business model, client contracts, and pipeline to assess revenue generation prospects and operational sustainability.
• Review director background and capacity to fund or support the business in early stages, given minimal equity.