MCLC CONSULTING LIMITED

Executive Summary

MCLC Consulting Limited is a small, recently incorporated management consultancy maintaining positive net current assets and equity but experiencing a notable decline in liquidity and showing no reported turnover or employees. While regulatory compliance is current, the lack of operational activity and shrinking cash reserves elevate risk and warrant further investigation into revenue generation and cash flow sustainability.

MCLC CONSULTING LIMITED - Analysis Report

Company Number: 13888309

Analysis Date: 2025-07-20 17:08 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and shareholder funds, which suggests basic solvency. However, the significant reduction in cash and net current assets from 2023 to 2024 and the lack of turnover and employees raise concerns about operational sustainability and liquidity.

2. Key Concerns:

• Declining Liquidity: Cash decreased sharply from £14,585 in 2023 to £5,736 in 2024, and net current assets reduced from £7,350 to £1,567, indicating potential cash flow challenges.
• No Reported Revenue or Employees: Absence of turnover data and zero employees suggest the company may not be actively generating income or scaling operations, risking sustainability.
• Limited Financial Disclosure: The accounts are unaudited, and the company is exempt from audit under small company rules, limiting external assurance on financial accuracy and completeness.

3. Positive Indicators:

• Compliance with Filing Requirements: The company is up to date with both its annual accounts and confirmation statement filings, indicating good regulatory compliance.
• Positive Net Current Assets and Shareholder Funds: Despite declines, the company maintains net current assets and positive equity, a base for meeting short-term liabilities.
• Clear Ownership and Control: Single controlling party with full ownership provides clarity and potentially streamlined decision-making.

4. Due Diligence Notes:

• Examine Revenue Streams: Verify if and when the company expects to generate turnover, including client contracts or pipeline.
• Assess Cash Flow Projections: Review management forecasts to understand how the company plans to manage liquidity pressures given the cash decline.
• Investigate Operational Activities: Confirm business activity status, including any outsourcing or subcontracting that might not require employees.
• Review Director’s Background: Although no red flags are noted, understanding the director’s experience can provide context on management quality.
• Audit Exemption Impact: Consider whether the absence of an audit could mask financial or operational risks.