PD4 CONSULTING LTD

Executive Summary

PD4 CONSULTING LTD is a small, recently established micro-entity with a fragile balance sheet and tight liquidity position, reflected in marginal net current liabilities. While current filings are compliant and the company remains active, the limited equity and erosion of net assets since inception warrant caution. Conditional credit approval is recommended with conservative limits and stringent monitoring of cash flows and working capital.

PD4 CONSULTING LTD - Analysis Report

Company Number: 13159881

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   PD4 CONSULTING LTD is a micro-entity engaged in telecommunications activities with a small asset base and limited equity. While it currently maintains positive net assets (£852) and is up to date on filings, the company’s net current liabilities position at the latest year end (-£23) signals tight short-term liquidity. The absence of detailed profit and loss data limits insight into profitability trends. Given the firm’s young age (incorporated 2021) and small scale, credit exposure should be conservative and closely monitored. Approval for modest credit facilities may be considered if supported by updated management cash flow forecasts and personal guarantees given the limited financial buffer.

2. Financial Strength:
   The company shows a very modest fixed asset base (£875) and current assets of £24,190 as of January 2024. Current liabilities slightly exceed current assets resulting in a net current liability of £23, a deterioration from the prior year’s positive working capital of £213. Total net assets remain positive but small (£852), indicating limited equity cushion. Share capital is minimal (£100). The decline in net current assets and net assets since incorporation (£4,460 in 2021) suggests erosion of retained earnings or accumulated losses over time. Overall, the balance sheet is fragile with minimal financial strength to absorb shocks.

3. Cash Flow Assessment:
   Current liabilities marginally exceed current assets, indicating potential short-term liquidity pressure. The company employs 2 persons (including directors), indicating low operating scale. Without profit and loss or cash flow statements, it is difficult to assess operating cash generation. The close matching of current assets and liabilities suggests working capital is tight, requiring careful cash management. Monitoring debtor collection and creditor payment terms will be critical to maintaining liquidity. No indication of external borrowings or cash reserves is provided.

4. Monitoring Points:

• Regular review of monthly cash flow forecasts and working capital management.
• Profitability trends once detailed P&L data is available.
• Timeliness of statutory filings and adherence to credit terms with suppliers.
• Director and shareholder financial support or guarantees due to limited equity.
• Any material changes in business scale or contracts impacting revenue streams.