SAS PROJECTS & CONSULTANCY LTD

Executive Summary

SAS PROJECTS & CONSULTANCY LTD operates as a micro-entity with a small asset base and workforce. Its financials reveal liquidity challenges and a significant reduction in equity over the last year, posing moderate solvency risk. However, the company maintains good regulatory compliance and stable directorship, which supports operational continuity. Further investigation into cash flow and equity changes is recommended to clarify financial stability.

SAS PROJECTS & CONSULTANCY LTD - Analysis Report

Company Number: 13816019

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

1. Risk Rating: MEDIUM
   The company shows signs of liquidity stress with current liabilities exceeding current assets and a significant reduction in shareholders' funds over the latest year. However, it remains active, compliant with filings, and holds modest fixed assets, which somewhat mitigates the risk.

2. Key Concerns:

• Negative Working Capital: As of 31 December 2024, current assets (£4,392) are substantially lower than current liabilities (£6,765), indicating potential liquidity issues and difficulty meeting short-term obligations.
• Declining Shareholders' Funds: Equity declined sharply from £10,816 in 2023 to £1,865 in 2024, suggesting losses or withdrawals that weaken the company's financial stability.
• Low Asset Base and Small Scale: Micro-entity classification with minimal fixed assets (£3,361) and a small workforce (2 employees) limits operational resilience and scalability.

3. Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are up to date with no overdue filings, indicating good regulatory compliance.
• Active Directors with Significant Control: Both directors hold equal significant control and are actively engaged, which may imply stable governance.
• No Audit Requirement: Micro-entity status reduces compliance burden and costs, appropriate for the company’s size.

4. Due Diligence Notes:

• Investigate reasons behind the sharp reduction in shareholders' funds and whether losses are operational or due to director transactions.
• Review cash flow statements (not available here) to assess ongoing liquidity and ability to meet short-term liabilities.
• Examine the nature of creditors and accruals to determine if there are overdue payables or contingent liabilities.
• Assess directors’ advances and credits, especially the outstanding balance against directors, to understand inter-company funding risks.