Company Number: 13312033

Analysis Date: 2025-07-20 11:13 UTC

1. Risk Rating: HIGH
   The company exhibits significant negative shareholders' funds and net current liabilities that have worsened substantially over recent years. Current liabilities exceed current assets by a large margin, indicating a high solvency and liquidity risk.

2. Key Concerns:

• Increasing Net Current Liabilities: From (£10,258) in 2021 to (£114,394) in 2024, showing growing inability to cover short-term obligations with current assets.
• Negative Shareholders' Funds: Declining from positive equity in 2020 (£2,267) to a large deficit (£114,358) in 2024, reflecting accumulated losses and potential insolvency risk.
• High Related Party Creditors: Over £150k owed to group and related companies, suggesting reliance on intercompany financing which may not be sustainable or indicative of cash flow issues.

3. Positive Indicators:

• Compliance: All statutory filings including accounts and confirmation statements are up to date and not overdue, indicating regulatory compliance and governance discipline.
• Established Management Team: Multiple directors with defined roles and no disqualifications noted, supporting operational stability.
• Industry: Operating in management consultancy (SIC 70229), a sector with relatively low capital intensity and potentially flexible cost structures.

4. Due Diligence Notes:

• Investigate the nature and terms of amounts owed to group undertakings and related parties to assess whether these are formal loans, trade payables, or informal support.
• Review cash flow statements and creditor ageing to understand working capital management and liquidity pressures.
• Assess future business plans and profitability forecasts to determine if the company can reverse accumulated losses and improve net asset position.
• Confirm whether deferred tax assets recognised are recoverable given the company’s loss-making history.
• Consider impact and timing of any contingent liabilities or off-balance-sheet arrangements not disclosed.