Company Number: 14459292

Analysis Date: 2025-07-29 12:42 UTC

1. Credit Opinion: DECLINE
   M Russell Consultancy Ltd is a micro-entity recently incorporated in late 2022 with very limited financial history. The latest accounts show net liabilities of £379 and extremely minimal net current assets of £311, indicating a weak balance sheet. The company’s equity is negative, which raises concerns about its ability to absorb losses or service debt. Given the very small scale of operations (one employee, the director) and the lack of profitability data, there is insufficient evidence of stable cash flows or financial resilience. Without more substantive trading history or stronger financial resources, extending credit would be high risk.

2. Financial Strength:
   The balance sheet as of 31 March 2024 indicates total current assets of £14,960 balanced against current liabilities of £14,649, resulting in a marginal net working capital of £311. However, accruals and deferred income of £690 push net liabilities to £379, reflecting negative net assets and shareholders' funds. This suggests the company has not yet built up retained earnings or equity, typical of a start-up phase, but it also means there is little financial cushion. Fixed assets are not reported, indicating no long-term asset base to leverage.

3. Cash Flow Assessment:
   Current assets are almost entirely matched by current liabilities, reflecting very tight liquidity. The company’s working capital is barely positive, and the negative net equity suggests operating losses or initial capital injection below liabilities. There is no indication of cash reserves or significant debtor balances. Given the micro size and single-person operation, cash flow is likely dependent on owner funding or limited consultancy income, which may be irregular. This low liquidity position raises concerns about the ability to meet short-term obligations reliably.

4. Monitoring Points:

• Future trading results and profitability to see if net liabilities reduce and equity turns positive.
• Cash flow statements or management accounts to confirm operational cash generation.
• Timely filing of accounts and confirmation statements to monitor compliance and ongoing activity.
• Any new capital injections or loans that improve the balance sheet.
• Changes in the number of employees or expansion that would affect liquidity needs.