M-CONSULT SERVICES LTD

Executive Summary

M-Consult Services Ltd is a small, young consulting company with improving but limited financial strength and liquidity. The business shows positive net assets and cash coverage of current liabilities, but the absolute scale is small, necessitating cautious credit exposure. Ongoing monitoring of cash flow and financial performance is essential to mitigate risk and support credit decisions.

M-CONSULT SERVICES LTD - Analysis Report

Company Number: NI684360

Analysis Date: 2025-07-20 17:26 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   M-Consult Services Ltd is a very young private limited company incorporated in late 2021. The company operates in a niche consulting sector (engineering related scientific and technical consulting) with a modest but improving financial position. The latest accounts show modest net assets of £914 and positive net current assets. However, the absolute size of the business remains very small with limited working capital and cash of £1,505. There is no audit, and limited financial history to assess trends robustly. Given the improving but still nascent financial position, credit exposure should be limited and monitored closely, with conditions on facility size and regular financial updates.

2. Financial Strength:
   The balance sheet shows net assets increased from £100 in 2023 to £914 in 2024, driven by retained earnings of £814. The company reports no fixed assets and current assets consist entirely of cash (£1,505) in 2024, compared to debtors of £100 in 2023. Current liabilities of £591 mainly include corporation tax and other creditors, all due within a year. The working capital ratio is positive, and shareholders’ funds are modest but increasing. The lack of fixed assets and reliance on cash and short-term creditors indicate a simple business model with limited tangible security.

3. Cash Flow Assessment:
   Cash at bank of £1,505 exceeds current liabilities of £591, indicating liquidity sufficient to meet short-term obligations at the date of the accounts. However, the low absolute cash amount and minimal asset base suggest limited buffer for unexpected expenses or downturns. No cash flow statement was provided, but the increase in retained earnings implies some profitability or capital injection. The company should maintain tight working capital controls and continue to build liquidity to improve resilience.

4. Monitoring Points:

• Regular review of updated management accounts to track cash flow and working capital.
• Monitor corporation tax liabilities and ensure timely payments to avoid penalties.
• Watch for any significant changes in creditors or sudden cash flow pressures.
• Confirm continued business activity and revenue generation as the company grows.
• Keep track of directors’ conduct and any changes in ownership or control.