Company Number: 12817590

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

1. Risk Rating: LOW
   PPK Consulting Ltd demonstrates a strong financial position with significant net current assets and net assets, an absence of overdue filings, and no indication of insolvency or regulatory non-compliance. The company’s dormant status was updated to active with positive net assets and cash reserves, suggesting low solvency and liquidity risk at this stage.

2. Key Concerns:

• Reliance on a single director and sole shareholder who holds complete control, which may pose governance risks.
• Presence of director loans (£98k) classified as current liabilities could indicate reliance on director funding to support operations.
• The company was dormant until recently; limited operational history may warrant caution regarding business sustainability and revenue generation.

3. Positive Indicators:

• Strong liquidity position with £586k cash and £226k trade debtors against £303k current liabilities as of January 2024, resulting in net current assets of over £500k.
• Positive shareholders’ funds (£510k) indicating capital adequacy and retained earnings accumulation.
• Up-to-date statutory filings with no overdue accounts or confirmation statements, reflecting good regulatory compliance.
• Small company exemption applied appropriately, and accounts prepared under FRS 102 standards without material departures.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans to understand potential repayment risk or dependency.
• Review the business model and client contracts underpinning the £226k trade debtors to assess revenue sustainability and credit risk.
• Confirm any related party transactions or guarantees given by the director that could impact financial stability.
• Examine the company’s strategic plans given its recent transition from dormant status and single-employee operation.
• Verify any contingent liabilities or off-balance sheet risks not disclosed in the accounts.