M A REID CONSULTANCY LIMITED

Executive Summary

M A Reid Consultancy Limited is a small, active management consultancy with healthy liquidity and solvency indicators, supported by positive net assets and up-to-date statutory filings. The business appears financially stable but is reliant on a sole employee/director and has paid significant dividends relative to earnings, which should be further examined. Overall, the company presents a low risk profile with standard due diligence recommended to confirm operational sustainability and governance.

M A REID CONSULTANCY LIMITED - Analysis Report

Company Number: 14194393

Analysis Date: 2025-07-20 16:15 UTC

1. Risk Rating: LOW
   M A Reid Consultancy Limited demonstrates a stable financial position with positive net current assets and net assets, no overdue filings, and no indications of insolvency or financial distress.

2. Key Concerns:

• Reliance on a single employee/director: The company employs only one person, which may present operational risk if that individual is unavailable.
• Limited scale of operations: With relatively modest current assets and liabilities, the business scale is small which could impact resilience to economic shocks.
• Dividend payments: The company paid dividends (£41,000 in 2024) that exceed the apparent increase in retained earnings, warranting review of cash flow sufficiency.

3. Positive Indicators:

• Positive net current assets (£10,899) and net assets indicate sound short-term liquidity and solvency.
• Increasing net assets and retained earnings from prior year show business growth.
• All statutory filings (accounts and confirmation statement) are up to date, indicating good regulatory compliance.
• Cash holdings (£21,142) exceed current liabilities, supporting liquidity.

4. Due Diligence Notes:

• Verify cash flow generation and sustainability of dividend payments relative to profits and cash reserves.
• Review business model and client base to assess operational sustainability given single employee structure.
• Confirm absence of director disqualifications or other governance issues.
• Assess any contingent liabilities or off-balance sheet risks not evident in the accounts.
• Investigate related party transactions, particularly dividend payments, for compliance with company law and financial prudence.