PPK CONSULTING LTD

Executive Summary

PPK Consulting Ltd shows a financially sound position with strong liquidity and positive net assets despite its recent activation from dormant status. The company is currently well-positioned to meet its obligations with no overdue filings or compliance issues. However, reliance on director loans and limited operational history suggest areas for further investigation to fully assess ongoing business viability and governance robustness.

PPK CONSULTING LTD - Analysis Report

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.