ICM PROJECT SOLUTIONS LTD

Executive Summary

ICM Project Solutions Ltd is a small, newly established consultancy with a fragile financial profile and limited equity. Although currently solvent, the company shows signs of working capital strain and requires close monitoring of liquidity and operational cash flow before considering significant credit facilities. Conditional approval is recommended with emphasis on ongoing financial performance reviews.

ICM PROJECT SOLUTIONS LTD - Analysis Report

Company Number: 14461032

Analysis Date: 2025-07-29 14:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   ICM Project Solutions Ltd is a very young micro-entity operating in management consultancy. The small scale and limited financial history restrict a full credit endorsement. The company shows a positive net asset position but a decline in net current assets from a modest surplus in 2023 to a slight deficit in 2024, indicating working capital pressure. Given the limited size and recent start, credit should be extended cautiously with conditions such as monitoring of liquidity and turnover growth before further exposure.

2. Financial Strength:
   The balance sheet reflects a fragile financial position typical of a start-up micro business. Fixed assets increased marginally from £296 to £690, a negligible amount. Current assets halved from £47,090 in 2023 to £23,892 in 2024 while current liabilities remained high (£24,363 in 2024 versus £46,826 in 2023), resulting in net current assets turning negative by £471. Net assets dropped from £560 to £219, showing a reduction in equity. Overall, the company has minimal financial buffer and low capitalization.

3. Cash Flow Assessment:
   The movement in current assets and liabilities suggests tightening liquidity. The drop in current assets combined with nearly unchanged liabilities puts short-term cash flow under pressure, risking difficulties in meeting immediate obligations. The net current liabilities position signals a working capital deficit, which could impact operational flexibility. The company employs 3 staff, up from 1, implying increased payroll commitments that must be supported by cash inflows. Careful cash flow monitoring is essential.

4. Monitoring Points:

• Monitor monthly cash and bank balances to assess liquidity trends.
• Track turnover and profit margins growth to support increased working capital needs.
• Watch for any late payments or supplier pressure indicating cash flow stress.
• Review director’s management of expenses and credit controls.
• Ensure timely filing of accounts and confirmation statements continue to avoid compliance risk.