Company Number: 12993467

Analysis Date: 2025-07-29 20:20 UTC

1. Risk Rating: MEDIUM
   Housman Consulting Limited shows ongoing operations with positive shareholders' funds but exhibits a notable increase in current liabilities relative to current assets, which poses a moderate solvency and liquidity risk. The small scale and limited equity buffer require careful monitoring.

2. Key Concerns:

• Sharp increase in current liabilities from £30,806 (2022) to £109,331 (2023) without a proportional rise in current assets, reducing net current assets to £3,217, indicating potential short-term liquidity pressure.
• Retained earnings have decreased from £9,019 (2022) to £5,919 (2023), suggesting recent profitability challenges or distributions that may weaken financial stability.
• Significant concentration of control with one PSC holding 75-100% of shares and voting rights, which could pose governance risks and limits minority shareholder protections.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, exhibiting good regulatory discipline.
• Cash holdings increased substantially from £31,372 (2022) to £100,484 (2023), which may support short-term liquidity despite increased liabilities.
• Tangible fixed assets have grown modestly, reflecting some investment in operational capacity.
• The business operates in the tax consultancy sector, a specialized professional service with steady demand potential.

4. Due Diligence Notes:

• Investigate the nature and cause of the large increase in current liabilities, particularly the "other creditors" which rose significantly, to understand if this relates to accrued expenses, deferred payments, or other obligations.
• Review recent profitability trends and cash flow statements to assess operational sustainability and whether the decline in reserves is due to losses or shareholder distributions.
• Assess the governance structure given the concentration of ownership and control, including director independence and decision-making processes.
• Confirm the accuracy and completeness of debtor balances and verify the collectability given the relatively small amounts outstanding.
• Evaluate any contingent liabilities or off-balance sheet risks not disclosed in the accounts.