Company Number: 13099999

Analysis Date: 2025-07-20 15:11 UTC

1. Risk Rating: MEDIUM
   While Miri Consulting Limited currently shows positive net current assets and shareholders' funds as of June 2024, its historical financials reveal very tight liquidity positions and minimal equity base, typical for a micro-entity with limited scale. The director's loans and repayments indicate possible reliance on related-party funding to maintain operations, which introduces some risk.

2. Key Concerns:

• Thin capitalization and equity: Share capital is nominal (£1) and shareholders' funds are low (£8,149), indicating limited financial buffer.
• Reliance on director advances: The director has advanced significant funds (£40,063) and repaid part, suggesting external borrowing or cash flow challenges requiring director support.
• Volatile working capital: Current assets and liabilities have fluctuated significantly over recent years, reflecting potential inconsistencies in cash flow management.

3. Positive Indicators:

• Timely filings: Accounts and confirmation statements are up to date, showing compliance with regulatory obligations.
• Active status with ongoing trading: The company is active with a director maintaining control and operations since incorporation in late 2020.
• Net current assets improvement: The latest year-end shows net current assets of £8,149, an improvement from near breakeven or negative positions previously.

4. Due Diligence Notes:

• Review detailed cash flow statements or internal management accounts, if available, to assess operational cash generation capacity beyond balance sheet snapshots.
• Investigate the terms and sustainability of director loans, including repayment plans and potential impact on liquidity if director support is withdrawn.
• Confirm the company's client base, contract pipeline, and revenue stability given the micro-entity scale and consultancy industry risks.
• Evaluate any contingent liabilities or off-balance-sheet commitments not reflected in the micro-entity accounts.