ERP TRANSFORMATION CONSULTING LTD

Executive Summary

ERP Transformation Consulting Ltd maintains a solvent and liquid position with no compliance issues, though recent declines in asset balances merit closer review. The company’s micro-entity scale and limited capital suggest cautious monitoring of operational sustainability is advisable. Overall, the financial data reflect low immediate risk but highlight areas for further inquiry to ensure continued stability.

ERP TRANSFORMATION CONSULTING LTD - Analysis Report

Company Number: 14226056

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: LOW
   The company exhibits a positive net asset position and current assets significantly exceeding current liabilities. No overdue filings or indications of regulatory non-compliance are evident. The business is small and relatively new, but financial indicators suggest low immediate solvency or liquidity risk.

2. Key Concerns:

• Significant reduction in net assets and current assets from £11,913 to £6,048 and from £23,702 to £6,312 respectively over the last financial year, warranting investigation into the cause.
• Minimal share capital (£2.00), which may limit financial flexibility or investor confidence.
• Limited scale of operations (2 employees) and micro-entity status may constrain operational stability and growth potential.

3. Positive Indicators:

• Current liabilities are minimal (£14) relative to current assets, indicating strong short-term liquidity.
• No overdue statutory filings or compliance issues, demonstrating good governance and regulatory adherence.
• Positive net assets and shareholders’ funds, reflecting a solvent financial position.
• Consistent director occupation and stable management with no disqualification records apparent.

4. Due Diligence Notes:

• Clarify reasons behind the sharp decline in current assets and net assets between 2023 and 2024, including cash flow and receivables analysis.
• Review detailed profit and loss accounts to assess operational profitability and sustainability.
• Examine contracts or client concentration given the small size and consultancy nature of the business.
• Confirm absence of contingent liabilities or off-balance-sheet obligations.
• Assess director’s background and any related party transactions.