PARALLEL RECRUIT LIMITED

Executive Summary

Parallel Recruit Limited is a small, active recruitment agency maintaining compliance with filing requirements and positive equity. However, a marked decrease in net assets and working capital in the latest accounts warrants caution regarding liquidity and operational stability. Further due diligence on cash flows, profitability, and key person risks is recommended to fully assess financial resilience.

PARALLEL RECRUIT LIMITED - Analysis Report

Company Number: 13127099

Analysis Date: 2025-07-20 14:31 UTC

1. Risk Rating: MEDIUM

Justification: Parallel Recruit Limited shows a positive net asset position and adequate working capital at the last reporting date; however, there is a notable decline in net current assets and net assets compared to previous years. The company is relatively young (incorporated 2021) with limited financial history, and current liabilities are significant against relatively small cash reserves. No overdue filings or liquidation status are present, indicating compliance, but the financial trend suggests potential liquidity pressure.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net assets decreased from £19,313 (2023) to £7,230 (2024), with net current assets decreasing from £18,597 to £5,965, suggesting reduced financial buffer.
• Low Share Capital: Share capital is minimal (£1), which may limit financial resilience and signal limited equity investment.
• Single Director and Employee: The company has only one director and reports one employee (likely the director), which could present operational risks if key person dependency is high.

3. Positive Indicators:

• Compliance with Filings: Both accounts and confirmation statement filings are up to date with no overdue reports.
• Positive Net Current Assets and Net Assets: Despite decline, the company maintains positive net current assets and equity, indicating solvency at the last reporting date.
• Business Activity: Operating in a defined niche (employment placement agency, SIC 78109) with an active website, suggesting operational presence.

4. Due Diligence Notes:

• Investigate reasons for the significant drop in net assets and working capital between 2023 and 2024, including profitability and cash flow drivers.
• Review cash flow statements (if available) to assess liquidity trends and the ability to meet short-term obligations.
• Confirm whether the director’s role includes all operational responsibilities and assess any business continuity plans.
• Assess client base stability and revenue generation given the business model in recruitment services.
• Confirm absence of contingent liabilities or off-balance sheet obligations that may impact financial health.