PAULA READER PEOPLE CONSULTING LIMITED

Executive Summary

Paula Reader People Consulting Limited demonstrates adequate short-term liquidity and compliance with filing requirements, reflecting operational discipline. However, the significant drop in net assets and large accruals relative to equity introduce moderate solvency and liquidity concerns. Further investigation into the nature of deferred income and profitability trends is recommended to fully assess financial health and business sustainability.

PAULA READER PEOPLE CONSULTING LIMITED - Analysis Report

Company Number: 14182923

Analysis Date: 2025-07-29 13:04 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and no overdue filings, but a significant reduction in net assets year-over-year and a large accrual balance raise potential concerns about financial stability and future obligations.

2. Key Concerns:

• Declining Net Assets: Net assets declined from £14,838 in 2023 to £6,249 in 2024, indicating erosion of equity, which may suggest operational losses or increased liabilities.
• High Accruals and Deferred Income: £33,000 in accruals/deferred income as of 2024, which is notably large relative to net assets—this may represent obligations or revenue recognition issues impacting liquidity.
• Single Employee Operation: With only one employee (the director), operational capacity is very limited, which may affect sustainability and growth potential.

3. Positive Indicators:

• Strong Net Current Asset Position: £37,215 net current assets in 2024 indicate good short-term liquidity to cover current liabilities of £13,335.
• Timely Compliance: No overdue accounts or confirmation statement filings suggest good governance and regulatory compliance to date.
• Micro Entity Status: Operating under micro-entity provisions reduces administrative burden and may reflect a focused business model appropriate for its scale.

4. Due Diligence Notes:

• Investigate the nature and timing of the £33,000 accruals and deferred income to assess potential future cash flow impact.
• Review profit and loss trends and cash flow statements to understand causes for net asset decline and assess ongoing operational viability.
• Confirm absence of director disqualifications or governance issues given the sole director status.
• Assess customer concentration and contract stability given limited staffing and scale.