RECONNECT CONSULTING SERVICES LTD

Executive Summary

RECONNECT CONSULTING SERVICES LTD presents a low risk profile supported by compliance with filing requirements and positive net assets despite its very recent establishment and small scale. Liquidity is adequate but somewhat reliant on director funding, and operational sustainability cannot be fully assessed due to limited financial detail. Further due diligence on debtor quality and director loans is recommended to confirm ongoing financial stability.

RECONNECT CONSULTING SERVICES LTD - Analysis Report

Company Number: 14470672

Analysis Date: 2025-07-29 14:25 UTC

1. Risk Rating: LOW

The company’s financial statements and filings indicate a low risk profile at this stage. RECONNECT CONSULTING SERVICES LTD is active, compliant with filing deadlines, and shows positive net current assets and shareholders’ funds. The company is small, recently incorporated, and appears to be managing its limited liabilities well without signs of financial distress.

2. Key Concerns:

• Limited scale and history: Incorporated in late 2022, the company has a short operating history with modest asset and equity base (£1,934 net assets at 2024 year-end), which limits visibility on long-term operational sustainability.
• Low cash reserves: Cash at bank decreased significantly from £978 to £334 within the last year, which could indicate tight liquidity and reliance on debtors or director loans to fund operations.
• Director’s loan reliance: Current liabilities include £741 owed on the director’s loan account, increasing from £554, which may suggest dependence on director funding rather than external finance or internal cash generation.

3. Positive Indicators:

• Compliance and governance: All statutory accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance.
• Positive working capital: Net current assets improved substantially from £363 in 2023 to £1,934 in 2024, demonstrating better short-term asset coverage of liabilities.
• Shareholder equity growth: Shareholders’ funds increased from £363 to £1,834, reflecting retained profits and capital strengthening.

4. Due Diligence Notes:

• Investigate the quality and collectability of trade debtors (£2,709) to assess if the receivables are likely to convert into cash without significant delays or write-offs.
• Review the nature and terms of the director’s loan account to understand repayment expectations and any potential impact on liquidity.
• Obtain turnover and profit figures (not disclosed in these accounts) to analyze operational performance and sustainability.
• Confirm if there are any contingent liabilities or off-balance sheet exposures not reflected in the accounts.