INFORMATION RISK MANAGEMENT LIMITED

1. Credit Opinion: CONDITIONAL

Reasoning: Information Risk Management Limited presents a fundamentally strong credit profile due to its corporate lineage—being a subsidiary of Altran UK (ultimately part of the Capgemini group)—and its long-standing market presence since 1998. The IT consultancy sector (SIC 62020) typically generates strong, asset-light cash flows. However, the credit decision is rated CONDITIONAL pending the review of the company's latest full financial statements, which were not included in this data extract. While the parent company's ownership provides significant implicit comfort, legal ring-fencing means the subsidiary's standalone ability to service debt must be confirmed. If a Parent Company Guarantee (PCG) from Altran UK or Capgemini is secured, this opinion would immediately shift to APPROVE.

2. Financial Strength

Balance Sheet Health: The company has a stated share capital of £255,368, which provides a reasonable, though not substantial, equity base. The most critical financial indicator in this data is the filing category: the company files Full accounts rather than abbreviated ones. This strongly implies the business exceeds the small company thresholds, likely having a turnover greater than £10.2m or a balance sheet total exceeding £5.1m.

Corporate Structure & Resilience: The company transitioned from a PLC to a Private Limited Company in 2015, which aligns with Altran's acquisition timeline. Altran UK holds over 75% of the shares, placing IRM under the umbrella of a multinational engineering and technology conglomerate. This ownership structure dramatically reduces standalone business risk, as the subsidiary likely benefits from group cash pooling, shared infrastructure, and a centralized pipeline.

Management Quality: The board is well-structured for an SME, featuring a dedicated Finance Director (Robert John Byrne) alongside experienced non-executive and executive directors. Filing compliance is impeccable, with no overdue documents, indicating strong administrative governance.

3. Cash Flow Assessment

Liquidity & Working Capital: Without the specific balance sheet figures, exact liquidity ratios cannot be calculated. However, IT consultancy businesses are inherently cash-generative with low working capital requirements. Their primary assets are typically trade debtors (accrued revenue) and cash, while current liabilities consist mainly of trade creditors and accrued payroll.

Debt Service Capacity: Given the sector and the corporate backing, standalone cash flow is likely sufficient to service standard commercial facilities. The presence of a Finance Director suggests active treasury and cash flow management. We must review the full accounts to ensure trade debtor days are not extending excessively, which could indicate client retention issues or delayed government/corporate contract payments.

4. Monitoring Points

• Parental Support & Ring-Fencing: Verify the exact nature of the relationship with Altran UK. Are there inter-company loans on the balance sheet? If so, are they subordinated or callable on demand? Seek a formal Parent Company Guarantee (PCG) for any significant credit facilities.
• Financial Performance: Request and review the full accounts for the period ending 31 December 2025 once filed, specifically analyzing EBITDA margins, net current assets, and operating cash flow conversion.
• Sector Margins: Monitor profitability margins. The IT consultancy space is competitive, and margin compression could indicate an over-reliance on the parent group for contracts or a loss of key personnel.
• Key Personnel Risk: Charles Derek White holds significant influence (25-50% shares) alongside his directorship. Monitor any changes in his involvement or equity stake, as his departure could impact operations despite the Altran majority ownership.