IECOM LTD

Executive Summary

IECOM LTD is a micro-entity with extremely limited net assets and working capital, relying heavily on the director’s ongoing financial support to continue operations. While regulatory compliance and active business presence are positive signs, the company’s minimal financial buffers and scale present moderate solvency and liquidity risks. Further due diligence into its cash flows, director support, and operational viability is recommended before investment consideration.

IECOM LTD - Analysis Report

Company Number: SC674080

Analysis Date: 2025-07-29 20:43 UTC

1. Risk Rating: MEDIUM
   The company presents a very low net asset base and minimal working capital, which raises concerns about its ability to absorb financial shocks or meet obligations comfortably. However, it remains active, compliant with filing requirements, and benefits from director support, mitigating some immediate solvency risks.

2. Key Concerns:

• Minimal Net Assets and Working Capital: The net assets have declined markedly from £646 in 2020 to just £10 in 2024, with net current assets also reducing to £10, indicating extremely thin liquidity buffers.
• Dependence on Director Support: The accounts explicitly state going concern depends on ongoing director support, suggesting limited operational cash flow or external financing. This reliance introduces risk if the director withdraws support.
• Limited Scale and Financial Transparency: Classified as a micro-entity with only one employee, the company’s financial statements are unaudited and limited in detail, reducing visibility into operational sustainability and financial health.

3. Positive Indicators:

• Current Compliance and Filing Status: Accounts and confirmation statements are filed on time with no overdue filings, indicating good governance and regulatory compliance.
• Active Website and Market Presence: A functioning website with clear service offerings suggests ongoing business activity and a professional approach to client engagement.
• Longevity Since Incorporation: Operating since 2020, the company has maintained activity for several years despite minimal financial scale, indicating some operational continuity.

4. Due Diligence Notes:

• Examine Cash Flow and Revenue Trends: Assess detailed turnover, client contracts, and cash flow statements to understand how the company funds its operations and sustains liquidity.
• Director’s Financial Support Arrangements: Clarify the nature, extent, and terms of the director’s support to evaluate the reliability and duration of this backing.
• Operational Viability and Market Position: Investigate the company’s client base, service contracts, and competitive position within the medical nursing home and management consultancy sectors referenced by SIC codes 86102 and 70229.
• Future Profitability Prospects: Review any business plans, forecasts, or pipeline information to determine sustainability beyond reliance on director support.
• Confirm Absence of Outstanding Liabilities or Contingent Risks: Ensure no hidden or contingent liabilities could impact solvency.