Company Number: 13820385

Analysis Date: 2025-07-20 18:09 UTC

1. Credit Opinion: DECLINE Paternoster People Consulting Ltd exhibits a consistently weak financial position since incorporation, with negative net current assets and shareholders' funds worsening over the past four years. The company's liabilities exceed its current assets by a significant margin, indicating poor liquidity and inability to meet short-term obligations from operating cash flows. No income statement is provided, but given persistent negative equity, the business appears loss-making or undercapitalized. The director is also the sole significant controller, concentrating risk. Overall, the company currently lacks financial strength and resilience to support additional credit.

2. Financial Strength: The balance sheet reveals negative net current assets of £3,429 at 31 December 2024, worsening from £3,154 in 2023. Shareholders' funds are negative £2,967, indicating accumulated losses or underfunding. Tangible fixed assets are minimal (£463), offering limited collateral value. Current liabilities (£6,308) are more than double current assets (£2,879), highlighting short-term funding pressure. The company’s equity position is weak with no signs of improvement or capital injection. This fragile financial structure presents a high risk of insolvency if trading conditions deteriorate.

3. Cash Flow Assessment: The company holds a very low cash balance (£102) relative to current liabilities, indicating limited liquid resources. Debtors (£2,777) form the bulk of current assets but the large creditor balance suggests payment terms may be stretched or overdue. Net working capital is negative, signifying the company is reliant on external funding or delayed payments to finance operations. Without an income statement or cash flow statement, it is difficult to confirm operating cash generation, but persistent negative equity and working capital deficits suggest cash flow problems. The liquidity position is insufficient to cover short-term debts comfortably.

4. Monitoring Points:

• Monitor ongoing filings for any improvements in working capital and equity position.
• Watch for capital injections or repayment of liabilities that improve liquidity.
• Observe the aging and collectability of debtors to assess cash conversion.
• Track any changes in director or ownership structure that may impact governance.
• Review future trading performance once income statements become available to evaluate profitability trends.