HENLEY CLOUD CONSULTING LTD

Executive Summary

Henley Cloud Consulting Ltd shows signs of financial stress with increasing net liabilities and substantial long-term debt relative to assets, placing it at high solvency risk. While short-term liquidity appears adequate and compliance is maintained, the company’s negative equity and limited capital base warrant careful scrutiny. Further investigation into debt structure and operational viability is recommended before investment consideration.

HENLEY CLOUD CONSULTING LTD - Analysis Report

Company Number: 12761435

Analysis Date: 2025-07-29 16:29 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns, with net liabilities worsening from -£3,780 in 2023 to -£5,223 in 2024. The existence of substantial long-term creditors (£8,813) compared to modest current assets (£3,150) indicates an inability to meet obligations without refinancing or capital injection.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net liabilities have increased, signaling erosion of equity and potential insolvency.
• High Long-term Liabilities: Creditors due after more than one year stand at £8,813 against limited fixed and current assets, raising questions on debt servicing capacity.
• No Employees and Minimal Share Capital: No reported employees and nominal share capital (£1.00) may indicate limited operational scale and capital buffer.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: Positive net current assets (£3,151) suggest short-term liquidity is currently sufficient to meet immediate obligations.
• Timely Filing and Compliance: Accounts and confirmation statements are filed on time; no overdue filings or penalties noted.
• Active Status and IT Consultancy Sector: Operating in IT consultancy (SIC 62020), a sector with potential for growth and scalability.

4. Due Diligence Notes:

• Clarify the nature and terms of long-term creditors and repayment schedule to assess refinancing risk.
• Investigate recent trading performance and cash flow statements to understand operational viability and liquidity trends.
• Review directors’ plans to address negative equity and strategies to improve capital structure or profitability.
• Confirm absence of any contingent liabilities or off-balance sheet obligations.
• Verify the background and financial standing of directors, given the small scale and equity deficit.