INTERSECT DESIGN AND CONSULTING LTD
Executive Summary
Intersect Design and Consulting Ltd exhibits significant financial stress characterized by negative net assets and working capital deficits two years post-incorporation. While regulatory compliance is maintained, the company’s reliance on director support to continue as a going concern raises solvency and liquidity concerns. Further investigation into operational performance and funding arrangements is recommended before considering investment.
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This analysis is opinion only and should not be interpreted as financial advice.
INTERSECT DESIGN AND CONSULTING LTD - Analysis Report
Risk Rating: HIGH
The company shows negative net assets and net current liabilities as of the latest financial year, indicating potential solvency and liquidity issues within two years of incorporation.Key Concerns:
- Negative Net Assets: The company’s net assets declined from a positive £6,343 in 2022 to a deficit of £3,852 in 2024, signaling erosion of equity capital.
- Working Capital Deficiency: Net current assets are negative £5,135, meaning current liabilities exceed current assets, which poses a short-term liquidity risk.
- Reliance on Director Support: The going concern statement explicitly notes that continued operations depend on director support, highlighting potential underlying cash flow or funding challenges.
Positive Indicators:
- Timely Filings: There are no overdue accounts or confirmation statements, indicating compliance with regulatory filing deadlines.
- No Indication of Insolvency Proceedings: The company is active and not under liquidation or administration.
- Micro-Entity Status: As a micro-entity, the company benefits from simplified reporting requirements, which may reduce administrative burdens and costs.
Due Diligence Notes:
- Investigate the nature and extent of director support referenced in the going concern note, including any loans or guarantees.
- Review profit and loss figures and cash flow statements if available to understand the operational performance and cash generation trends.
- Confirm whether any related party transactions or contingent liabilities exist that may affect solvency.
- Assess the company's business plan and market position given the decline in net assets within a short operational period.
- Verify the directors’ backgrounds and any potential risks related to governance or management continuity.
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