HOGARTH BUSINESS CONSULTANCY LIMITED

Executive Summary

Hogarth Business Consultancy Limited is a newly incorporated small consultancy with a solvent balance sheet and adequate cash balance as of February 2024. However, the substantial short-term liabilities, lack of operational history, and concentrated ownership present moderate liquidity and governance risks. Further scrutiny of cash flow management and business sustainability is recommended to fully evaluate investment risk.

HOGARTH BUSINESS CONSULTANCY LIMITED - Analysis Report

Company Number: 14633990

Analysis Date: 2025-07-29 18:11 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and net equity, indicating solvency at the reporting date. However, the small scale, recent incorporation, and relatively high short-term liabilities (particularly corporation tax and accruals) create some liquidity risk and operational uncertainty in the near term.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£37,746) are significant relative to current assets (£53,788), with corporation tax (£24,877) comprising the largest creditor, suggesting upcoming cash outflows that need careful management.
• Limited Operational History: Incorporated in 2023 with only one financial period filed; limited track record makes it difficult to assess business sustainability or growth trajectory.
• Concentration of Control: One individual (Mr Neil James Cole) owns 100% shares and voting rights, which may raise governance and succession risk considerations.

3. Positive Indicators:

• Positive Net Current Assets and Net Equity: The company reported £16,042 net current assets and shareholders’ funds of the same amount, demonstrating a solvent position as of the last accounts date.
• No Overdue Filings: Both accounts and confirmation statements are timely filed, suggesting compliance with regulatory requirements.
• Cash Holding: Cash of £45,396 indicates some buffer to meet short-term obligations.

4. Due Diligence Notes:

• Verify the company’s cash flow projections and payment plans related to the corporation tax liability to assess liquidity risk in the coming months.
• Review any contracts or client base to understand revenue visibility and sustainability given the company’s infancy.
• Assess any related party transactions, including the director’s loan account, for potential financial dependencies or conflicts of interest.
• Confirm internal controls and governance arrangements given the sole director and PSC to understand operational resilience.