Company Number: 13209453

Analysis Date: 2025-07-29 13:47 UTC

1. Risk Rating: LOW to MEDIUM
   Quercus Consultancy Limited exhibits a generally sound financial position for a micro-entity with positive net assets and manageable current liabilities. However, the fluctuation in current liabilities and provisions warrants some caution.

2. Key Concerns:

• Current Liabilities Reduction: A significant decrease in creditors from £42,554 in 2023 to £7,727 in 2024 could indicate timing differences in payables or settlement of debts; this volatility should be understood in context.
• Provisions for Liabilities: Although reduced from £8,999 to £6,674, these provisions still represent contingent obligations that may impact short-term liquidity or solvency depending on their nature.
• Limited Scale and Single Employee: The company employs only one person and is classified as a micro-entity, which may limit operational scalability and resilience against market or client fluctuations.

3. Positive Indicators:

• Shareholders’ Funds Growth: Equity increased substantially from £7,201 in 2023 to £34,968 in 2024, suggesting retained earnings or capital injections improving the company’s solvency.
• Current Assets Exceeding Liabilities: Current assets remain significantly higher than current liabilities (£48,624 vs. £7,727 in 2024), indicating good short-term liquidity.
• No Overdue Filings: The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance and good governance practices.
• Stable Director and No Insolvency Status: The company has a single director with no disqualification records and is not under liquidation or administration, indicating operational stability.

4. Due Diligence Notes:

• Clarify the nature and timing of provisions for liabilities to assess potential future cash outflows and associated risks.
• Investigate the reasons behind the large decrease in current liabilities year-on-year to understand if this is reflective of improved payables management or one-off effects.
• Review the company’s revenue streams and client base to evaluate operational sustainability given its micro-entity status and minimal staffing.
• Confirm the company’s cash flow statements (not provided) to ensure liquidity is consistent beyond balance sheet snapshots.