NJT CONSULTANTS LIMITED

Executive Summary

NJT CONSULTANTS LIMITED appears financially stable with positive net assets and good regulatory compliance. The company maintains adequate liquidity and solid operational control under a single director. However, declining cash balances and reliance on one individual warrant further review of cash flow and operational resilience before investment.

NJT CONSULTANTS LIMITED - Analysis Report

Company Number: 13989821

Analysis Date: 2025-07-20 11:23 UTC

1. Risk Rating: LOW

Justification: NJT CONSULTANTS LIMITED demonstrates a solid financial position for a small, recently incorporated consultancy. The company has positive net assets and net current assets, a strong cash balance relative to liabilities, no overdue filings, and a single director with full control. These factors collectively indicate low immediate risk in solvency, liquidity, and regulatory compliance.

2. Key Concerns:

• Declining cash and current assets: Cash decreased by approximately £17,000 (37% reduction) from 2023 to 2024 and current assets reduced by about £18,000, which could signal tightening liquidity.
• Corporation tax creditor remains significant: There is a corporation tax liability of £12,608 as of March 2024, which although current, requires monitoring to ensure timely settlement.
• Reliance on a single director and employee: Operational continuity and governance are dependent on one individual, which may pose sustainability and operational risk if unforeseen issues arise.

3. Positive Indicators:

• Positive net current assets and net assets: Net current assets increased from £21,275 in 2023 to £25,187 in 2024, and net assets rose from £22,044 to £25,746, showing retained profitability and capital growth.
• No overdue statutory filings: Both accounts and confirmation statements are filed on time, reflecting good compliance and governance.
• Strong cash position relative to liabilities: Despite a decrease, cash at £37,516 comfortably covers current liabilities of £21,129, supporting short-term liquidity.
• Clear ownership and control: The sole director and 75-100% shareholder ensures decisive management and potentially lower agency risk.

4. Due Diligence Notes:

• Review recent cash flow statements and management accounts to assess the cause and sustainability of the cash decrease.
• Investigate corporation tax payment history and any potential deferred tax liabilities beyond the small provision noted.
• Confirm the nature and timing of "other creditors" that have decreased materially from £25,191 to £6,946 to understand cash flow impact.
• Assess succession and contingency planning given single director and employee status.
• Verify revenue trends and client base stability in the management consultancy sector under SIC code 70229.