NEGATIVE CONSULTING LTD

Executive Summary

Negative Consulting Ltd is a very recently established IT consultancy company with minimal financial history and a very small capital base. While solvent and current with filings, the company’s liquidity position is tight with current liabilities almost equal to cash reserves. Investors should note the operational concentration risk and limited working capital, warranting further due diligence on cash flow management and business sustainability.

NEGATIVE CONSULTING LTD - Analysis Report

Company Number: 15306693

Analysis Date: 2025-07-29 13:46 UTC

1. Risk Rating: MEDIUM

Justification: Negative Consulting Ltd is a newly incorporated private limited company (incorporated November 2023) with minimal financial history. The balance sheet at 31 March 2025 shows very limited net current assets (£100), cash of £35,024 closely matched by current liabilities of £34,924, primarily taxation and social security. The company appears solvent but with very thin working capital, indicating limited financial buffer. No audit was required due to small company exemptions, limiting detailed financial insight. Overall, while there is no immediate solvency threat, the minimal equity and working capital suggest moderate risk regarding financial stability and liquidity.

2. Key Concerns:

• Minimal net current assets (£100) and shareholders’ funds, indicating very low equity and limited financial resilience.
• Current liabilities almost equal to cash on hand, mostly tax-related, posing a risk if timing of payments or income is disrupted.
• Single director and shareholder structure with full control by one individual may present governance and operational concentration risk.

3. Positive Indicators:

• The company is up to date with statutory filings (accounts and confirmation statements) and is in active status with no overdue filings.
• Cash balance is sufficient to cover current liabilities at the balance sheet date, showing short-term liquidity.
• Operating in the IT consultancy sector (SIC 62020), which generally has low fixed asset requirements and potential for scalability.

4. Due Diligence Notes:

• Investigate the nature and timing of the tax and social security liabilities to understand cash flow pressures.
• Review the company’s business plan and pipeline to assess sustainability and growth prospects given the limited equity base.
• Confirm that the director has no history of disqualifications or adverse records and assess governance arrangements given the single-person control.
• Request management accounts or cash flow forecasts to evaluate ongoing liquidity beyond the balance sheet snapshot.