LEGACY CONSULTANTS LIMITED

Executive Summary

Legacy Consultants Limited presents a growing balance sheet with improving working capital and equity, reflecting progress in financial stability since incorporation. However, the significant rise in current liabilities, especially tax-related, and limited operational scale pose medium-level risks to liquidity and sustainability. Further financial details and operational insight are necessary to fully evaluate ongoing viability and risk exposure.

LEGACY CONSULTANTS LIMITED - Analysis Report

Company Number: 13887505

Analysis Date: 2025-07-20 16:58 UTC

1. Risk Rating: MEDIUM
   Legacy Consultants Limited shows a positive net current asset position and increasing shareholder funds, which supports short-term solvency. However, the relatively small scale of operations, reliance on a low number of employees, and the significant increase in current liabilities, particularly taxation and social security liabilities, introduce some risk in liquidity and operational stability.

2. Key Concerns:

• Rising Current Liabilities: Current liabilities increased substantially from £10,326 in 2023 to £27,731 in 2024, driven mainly by taxation and social security obligations. This may indicate cash flow pressure or delayed payments.
• Limited Scale and Resources: The company operates with only one employee on average and limited assets, which may constrain its ability to scale or absorb financial shocks.
• Lack of Audited Accounts and Income Statement: The accounts are unaudited and exclude the income statement, limiting visibility on profitability and operational cash flows, which are critical for assessing sustainability.

3. Positive Indicators:

• Improved Working Capital: Net current assets improved markedly from £138 in 2023 to £15,291 in 2024, suggesting better short-term asset coverage of liabilities.
• Increasing Shareholders’ Funds: Equity increased from £138 to £15,291 over the year, indicating retained earnings or capital injection and a strengthening balance sheet.
• Timely Filings: Both accounts and confirmation statements are filed on time, indicating compliance with regulatory requirements.

4. Due Diligence Notes:

• Obtain and review the full profit and loss statements or management accounts to assess revenue trends, profitability, and cash flow generation.
• Investigate the nature of the significant taxation and social security liabilities to understand if these are accrued obligations or indicative of cash flow constraints.
• Review director backgrounds for any conduct or disqualification records (none are indicated here, but confirmation is advisable).
• Understand client concentration and contract stability in the management consultancy sector to assess operational sustainability.