Company Number: SC736461

Analysis Date: 2025-07-29 12:41 UTC

1. Risk Rating: LOW
   KR&M Consultants Ltd presents a low risk profile based on the available data. The company maintains positive net current assets and shareholders’ funds with no overdue filings or signs of insolvency. Its micro-entity status and recent incorporation limit financial complexity, and there are no indications of operational or regulatory distress.

2. Key Concerns:

• Lack of Employees: The company reported zero employees for the latest year compared to one in the previous year, which may indicate limited operational capacity or reliance on external contractors.
• Minimal Fixed Assets: Very low fixed asset base (£764), which may suggest limited investment in long-term resources or infrastructure, potentially impacting operational scalability.
• Short Operating History: Incorporated in mid-2022, the company has a short track record, which limits historical performance data and makes long-term sustainability harder to assess conclusively.

3. Positive Indicators:

• Strong Working Capital Position: Net current assets increased from £12,000 in 2023 to £15,994 in 2024, indicating healthy liquidity to meet short-term obligations.
• No Overdue Filings: Both accounts and confirmation statement filings are up to date, showing good compliance and governance discipline.
• Positive Shareholders’ Funds: Shareholders’ equity increased to £16,758, reflecting retained earnings or capital injections supporting the company’s financial stability.
• Micro-Entity Accounting: Use of micro-entity provisions suggests a simple financial structure and low complexity, beneficial for transparency and reduced audit burden.

4. Due Diligence Notes:

• Confirm Revenue and Profitability Trends: As no profit and loss details were provided, verify income streams, profitability, and cash flow generation to assess operational sustainability.
• Understand Business Model & Staffing: Investigate how the company operates without employees—whether via subcontractors or director-only operations—and the impact on service delivery and growth.
• Director Background Check: Review director M McGregor’s conduct and history for any regulatory or reputational risks.
• Contracts and Client Base: Assess client concentration, contract length, and recurring revenue to evaluate business resilience.
• Future Plans and Capital Requirements: Query any plans for asset acquisition or staff recruitment that might affect financial needs and risk profile.