INSPEC BUILDING CONSULTANCY LTD

Executive Summary

Inspec Building Consultancy Ltd presents a low risk profile with positive net assets and timely statutory compliance, despite its micro-entity status and small operational scale. Key concerns center on liquidity reduction and sole director dependence, warranting further review of cash flow and operational sustainability. Overall, the company appears solvent and well-managed at this early stage.

INSPEC BUILDING CONSULTANCY LTD - Analysis Report

Company Number: SC744770

Analysis Date: 2025-07-20 19:05 UTC

1. Risk Rating: LOW
   The company exhibits a stable financial position with positive net assets and net current assets, no overdue filings, and no indications of insolvency or liquidation. As a micro-entity with limited operational scale and a sole director/shareholder, risks appear contained.

2. Key Concerns:

• Declining Current Assets: Current assets decreased from £6,151 in 2023 to £3,698 in 2024, which may indicate reduced liquidity or cash reserves.
• Small Operational Scale: The business operates with only one employee and limited fixed assets (£4,622), which may constrain growth and operational resilience.
• Reliance on a Single Director/PSC: Mr Jonathan Frew holds 100% control, concentrating governance and operational risk.

3. Positive Indicators:

• Positive Net Assets and Net Current Assets: Net assets increased slightly to £7,290 in 2024, with net current assets remaining positive at £3,698, signaling solvency and working capital sufficiency.
• Timely Compliance: All statutory filings including accounts and confirmation statements are up to date with no overdue filings or penalties.
• Stable Shareholders’ Funds: Shareholders’ funds have been consistent, reflecting retained earnings or capital stability since incorporation.

4. Due Diligence Notes:

• Investigate the cause of decrease in current assets year-on-year and assess cash flow trends to confirm ongoing liquidity sufficiency.
• Review the business plan and client contracts to understand revenue streams and operational sustainability given the micro scale and single employee.
• Confirm the director’s experience and capacity to manage growth risks and compliance in a sole control structure.
• Verify any contingent liabilities or off balance sheet exposures not reflected in the financials.
• Assess any potential impact of the previous company name change on business continuity or client perception.