KM CHANGE CONSULTING LIMITED

Executive Summary

KM Change Consulting Limited remains compliant with filing requirements but exhibits increased financial risk due to deteriorating net assets and liquidity. Elevated finance lease obligations and rising tax liabilities may pressure cash flow. Further investigation into the reasons behind the recent financial decline and ongoing operational viability is recommended before considering investment.

KM CHANGE CONSULTING LIMITED - Analysis Report

Company Number: 13010452

Analysis Date: 2025-07-20 14:29 UTC

1. Risk Rating: MEDIUM

Justification: KM Change Consulting Limited is an active private limited company operating in management consultancy since 2020. The most recent financials (year ending 30 Nov 2024) show a significant deterioration in net assets and liquidity compared to prior years, with net assets falling from £38,311 in 2023 to £7,431 in 2024 and net current assets dropping sharply from £32,762 to £2,613. The company maintains ongoing finance lease obligations which contribute to its liabilities. While there is no indication of overdue filings or regulatory non-compliance, the financial trends indicate increased solvency and liquidity risks.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets have decreased by over 80% year-on-year, and net current assets are marginally positive, indicating tight liquidity that could impair the company’s ability to meet short-term obligations.
• High Finance Lease Obligations: The company carries significant finance lease liabilities (£24,945 total, with £5,645 due within one year), which may constrain cash flow and increase financial risk.
• Rising Current Liabilities (Tax and VAT): Corporation tax and VAT liabilities have increased notably (£33,643 and £15,233 respectively), suggesting potential cash flow pressures or delayed payments to HMRC.

3. Positive Indicators:

• Timely Filings and Compliance: Accounts and confirmation statements are current with no overdue filings, indicating sound regulatory compliance.
• Single Director with Relevant Expertise: The sole director is a management consultant, aligned with the company’s activity, suggesting operational focus.
• Modest Share Capital and Small Size: The company is small with minimal share capital (£1), limiting exposure and complexity.

4. Due Diligence Notes:

• Investigate causes for the sharp decline in net assets and working capital in the 2024 financial year—whether due to operational losses, asset write-downs, or increased liabilities.
• Review the nature and terms of the finance lease obligations to assess refinancing or repayment risks.
• Examine cash flow statements and management accounts for recent periods to verify liquidity trends and tax payment status.
• Confirm the sustainability of the business model and client pipeline given financial deterioration.
• Clarify any off-balance sheet liabilities or contingent risks not disclosed in the accounts.