Company Number: 14194932

Analysis Date: 2025-07-29 15:52 UTC

1. Risk Rating: MEDIUM
   Prospect Expert Consultants Limited demonstrates positive net assets and working capital, but significant related party balances and substantial growth in debtors and creditors raise concerns about liquidity and potential intercompany dependencies.

2. Key Concerns:

• High level of current liabilities (£959,659) closely matching current assets (£1,062,407), indicating limited liquidity cushion.
• Material related party balances: £864,684 owed from related companies and £360,110 owed to related companies, both interest-free and repayable on demand, which may affect cash flow predictability and financial independence.
• Rapid growth in debtors (from £29,550 to £977,239) and creditors (from £421,144 to £959,659) within one year could signal aggressive revenue recognition or payment terms that may stress cash flow.

3. Positive Indicators:

• Positive net current assets (£102,748) and net assets (£133,923) show the company is solvent as of the latest accounts date.
• No overdue filings or compliance issues; accounts and confirmation statement are up to date.
• Single director and sole shareholder with full control suggests clear decision-making authority.
• The company is entitled to audit exemption, which is common for small companies, and the accounts comply with applicable standards.

4. Due Diligence Notes:

• Investigate the nature and collectability of related party debtors (£864,684), including the financial health of associated companies.
• Understand the composition and timing of trade creditors and other creditors to assess liquidity risk.
• Review cash flow statements or management accounts (if available) to confirm cash generation and payment cycle stability.
• Assess the sustainability of revenue growth and debtor increases to determine if the business model is operationally stable.
• Confirm there are no contingent liabilities or off-balance-sheet risks not disclosed in filings.