Company Number: 14655226

Analysis Date: 2025-07-29 18:14 UTC

1. Risk Rating: MEDIUM

The company shows a modest net asset position with a narrow positive working capital buffer, but the extremely high debtor balances relative to minimal cash holdings raise concerns about liquidity and cash flow sufficiency.

2. Key Concerns:

• Liquidity Risk: Cash on hand is minimal (£1,521), while current liabilities are very large (£15.57M), almost fully matched by debtors of similar magnitude. This indicates potential dependency on timely debtor collection to meet obligations.
• Debtor Concentration: The company’s current assets are almost entirely debtors, which may be concentrated with few clients or subject to collectability risk, impacting operational cash flow.
• Limited Operational Scale: With only two employees (both directors) and small share capital (£200), operational resilience and growth potential may be constrained.

3. Positive Indicators:

• Positive Net Current Assets: Although narrow, net current assets increased from £133k to £296k year-over-year, indicating some improvement in working capital.
• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time, suggesting good regulatory compliance.
• Stable Ownership and Management: Both directors are also significant shareholders, indicating aligned interests and stable control.

4. Due Diligence Notes:

• Investigate the nature, aging, and concentration of debtor balances to assess collectability and credit risk.
• Review cash flow statements or management accounts to understand actual liquidity and timing of cash inflows/outflows.
• Assess business model sustainability given the small team size and the management consultancy SIC code.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that may affect solvency.
• Evaluate any related party transactions given director/shareholder overlap.