RJY CONSULTING LTD

Executive Summary

RJY Consulting Ltd is a recently established, micro-sized consultancy with a stable but small equity base and positive working capital. The company demonstrates timely compliance and no external debt, though it relies on a director’s loan. Credit approval is recommended with modest exposure and ongoing monitoring of liquidity and related party funding.

RJY CONSULTING LTD - Analysis Report

Company Number: 13958057

Analysis Date: 2025-07-20 16:49 UTC

1. Credit Opinion: APPROVE with caution. RJY Consulting Ltd is a micro-sized management consultancy company incorporated in 2022, currently active and filing accounts on time. The company shows positive net assets and shareholder funds, indicating a stable equity position. However, its total current assets decreased from £56.4k in 2023 to £37.7k in 2024, and it has a director's loan of £17.1k, which may represent some reliance on related party funding. The business is very small with only one employee (the director) and limited financial history, so credit exposure should be modest and monitored closely.

2. Financial Strength: The balance sheet reflects a healthy net asset position of £37.1k as of 31 March 2024, slightly down from £38.8k the previous year. Current liabilities are minimal (accruals/deferred income of £600), and no other short-term creditors are reported. The company has no fixed assets listed, consistent with a consultancy business model. Shareholders’ funds equal net assets, showing no external debt apart from the director’s loan. Overall, the financial base is solid but modest in scale.

3. Cash Flow Assessment: Current assets of £37.7k primarily represent cash and short-term receivables, sufficient to cover immediate liabilities of £600. The company’s working capital is positive and liquid. However, the decline in current assets compared to the previous year suggests some reduction in liquidity. The director’s loan of £17.1k provides additional informal funding flexibility but also indicates a dependence on related-party financing. Cash flow appears adequate to meet short-term obligations, but limited business scale means cash flow volatility risk is higher.

4. Monitoring Points:

• Track future cash flow trends and liquidity to ensure the company can maintain positive working capital without increasing reliance on director loans.
• Monitor the director’s loan balance and repayment terms for any signs of financial stress.
• Watch revenue growth and profitability metrics as they develop with limited operating history.
• Review timely filing of accounts and confirmation statements to maintain compliance.
• Observe any changes in company size, staffing, or business activity that could affect credit risk.