PRINCIPLE CONSULTANCY LIMITED

Executive Summary

Principle Consultancy Limited remains solvent with positive working capital but has experienced a significant deterioration in net assets and liquidity over the latest year. While regulatory filings are current and governance appears stable, the sharp decline in equity warrants further investigation to assess ongoing financial health and operational sustainability.

PRINCIPLE CONSULTANCY LIMITED - Analysis Report

Company Number: 12438919

Analysis Date: 2025-07-29 15:24 UTC

1. Risk Rating: MEDIUM
   The company shows a significant decline in net assets and working capital over the latest financial year, which signals potential solvency and liquidity risks. However, it remains solvent with positive net assets and current assets exceeding current liabilities as of the last accounts date.

2. Key Concerns:

• Sharp Decline in Net Assets: Net assets dropped from £79,504 in 2023 to £1,492 in 2024, indicating a substantial loss or diminution in equity within one year.
• Reduced Working Capital: Net current assets decreased from £115,869 to £34,898, suggesting tighter liquidity and potential cash flow pressures.
• High Long-Term Creditors Relative to Net Assets: Creditors falling due after more than one year remain significant (£34,825), nearly matching net assets, which could constrain operational flexibility.

3. Positive Indicators:

• Current Assets still exceed Current Liabilities: The company maintains a positive net current asset position, indicating the ability to meet short-term obligations as of the last filing.
• No Overdue Filings: Accounts and confirmation statements are filed on time, reflecting good regulatory compliance.
• Stable Director and Shareholder Structure: Single director and controlling shareholder with clear ownership and no indications of director disqualifications or governance issues.

4. Due Diligence Notes:

• Investigate the cause of the drastic reduction in net assets between 2023 and 2024; review profit and loss details and any exceptional charges or write-downs.
• Assess the nature and terms of the long-term creditors, including repayment schedules and covenants that may impact solvency.
• Review cash flow statements if available to understand operating cash generation and liquidity trends beyond balance sheet data.
• Confirm whether the company has any contingent liabilities or off-balance sheet exposures that could affect financial stability.