PAUL NETHERTON RISK & RESILIENCE CONSULTANCY LTD

Executive Summary

Paul Netherton Risk & Resilience Consultancy Ltd exhibits a severe decline in financial health with dwindling net assets and working capital. The company's limited asset base and shrinking liquidity impair its ability to meet obligations, making credit extension high risk at present. Close monitoring of liquidity and cash flow developments is essential before reconsidering credit facilities.

PAUL NETHERTON RISK & RESILIENCE CONSULTANCY LTD - Analysis Report

Company Number: 12661035

Analysis Date: 2025-07-20 14:47 UTC

1. Credit Opinion: DECLINE
   Paul Netherton Risk & Resilience Consultancy Ltd shows a marked deterioration in financial position over the recent years. Net assets have fallen steeply from £39,681 in 2021 to just £1,296 in 2025, driven by a collapse in current assets and working capital. The company’s liquidity profile is weak, with current assets falling from £48,640 (2021) to £2,681 (2025) and current liabilities slightly increasing. This shrinking asset base and working capital erosion raise concerns about the company’s ability to meet short-term obligations and service debt. Given this negative financial trajectory and absence of profitability data to assess cash flows, extending credit would be high risk.

2. Financial Strength:
   The balance sheet is very weak and shrinking. Fixed assets are minimal (£635 in 2025), indicating limited tangible collateral. The net current assets have declined sharply to £1,741, reducing the buffer against short-term liabilities. Total net assets of £1,296 barely exceed share capital (£100), suggesting little retained earnings or reserves to absorb losses. The steep decline from prior years signifies cash drain or asset disposals. The absence of employees and immaterial fixed assets further suggests limited operational scale.

3. Cash Flow Assessment:
   Working capital has deteriorated significantly, with current assets dropping drastically from previous years. Cash or equivalents embedded in current assets appear very low (£2,681) against current liabilities of £940, yielding a modest current ratio (~2.85) but from a very reduced base. Without profit and loss data, it is impossible to confirm positive operating cash flow, but the asset decline suggests cash generation is insufficient to sustain operations or repay debt. The company may rely heavily on directors’ funding or external support.

4. Monitoring Points:

• Track liquidity trends closely, particularly current assets vs. liabilities.
• Monitor any changes in net assets and shareholder funds for recovery or further deterioration.
• Watch for updated accounts including profit and loss to assess operational cash flow and profitability.
• Review director conduct and any changes in ownership or control that may affect risk profile.
• Assess payment history and any indications of overdue liabilities or supplier issues.