Credit Assessment: IKEN CONSULTING LIMITED

1. Credit Opinion: DECLINE

Reasoning: This company is fundamentally insolvent on a balance sheet basis and presents unacceptable credit risk. Shareholders' funds are negative £685,233 (April 2025), meaning liabilities exceed assets by a substantial margin. With only £489 in cash against £688,192 in current liabilities, there is no capacity to service new debt obligations. The director's going concern assertion, while permitted, lacks credibility given the severity of the balance sheet deficiency and the absence of any visible revenue or profitability data to demonstrate operational viability.

2. Financial Strength: Critical Deterioration

The balance sheet trajectory reveals a catastrophic decline:

Between 2021 and 2022, total assets collapsed from £3.77M to £369k – a reduction of over £3.4M. This likely reflects a property disposal or write-down given the SIC code 68100 (buying and selling of own real estate). The company has carried negative net assets for four consecutive years.

Key balance sheet concerns: - Share capital of only £2 – no meaningful equity cushion - Accumulated losses of £685,233 in the P&L reserve - Tangible fixed assets of just £2,472 (freehold land/buildings NBV £1,491) - No debtors disclosed – suggesting negligible trading activity - Related party creditor of £26,000 newly appeared in 2025

3. Cash Flow Assessment: Non-Existent Liquidity

Current Position: - Current assets: £489 (cash only) - Current liabilities: £688,192 - Net current liabilities: (£687,703) - Current ratio: 0.0007:1

The company has virtually zero liquidity. With £677,431 in "other creditors" and £10,761 in tax/social security liabilities, all due within one year, there is no working capital to support operations or debt service.

Cash generation appears non-existent: Cash has fluctuated between £265 and £24,822 over the past seven years, with no evidence of operating cash flow. The income statement has been deliberately omitted from filings, obscuring revenue and profitability.

4. Monitoring Points

If any credit exposure were to exist (e.g., through legacy arrangements), the following would require vigilant monitoring:

1. Creditor composition and behaviour – £677k in other creditors represents an unknown creditor base. Any demand for repayment would trigger immediate insolvency.

2. Going concern viability – The director asserts going concern, but with negative net assets of this magnitude and negligible cash, this rests entirely on creditor forbearance. Any change in creditor posture is critical.

3. Related party transactions – The new £26,000 related party creditor warrants scrutiny. Are related parties propping up the company, or are obligations shifting between connected entities?

4. Property transactions – Given the historical asset base and SIC classification, any further disposal or transfer of the remaining freehold property would eliminate the last tangible asset.

5. Filing compliance – Accounts are currently up to date, but any delay could signal further deterioration.

6. Director conduct – No disqualification records found, which is positive. However, the financial stewardship evidenced here raises questions about the quality of financial management.