SIMON CONSULTING LTD

Executive Summary

SIMON CONSULTING LTD exhibits a high-risk profile due to its precarious solvency position, with net assets dwindling to a nominal value and increasing current liabilities. The company’s viability hinges heavily on financial support from its sole director, underscoring operational fragility. While regulatory compliance and asset investment are positive signs, further investigation into cash flow and business sustainability is essential before considering investment.

SIMON CONSULTING LTD - Analysis Report

Company Number: 13047644

Analysis Date: 2025-07-20 11:51 UTC

1. Risk Rating: HIGH

   The company presents a high risk primarily due to its weak solvency position as evidenced by minimal net assets and recurring net current liabilities in recent years. Despite being a micro-entity, the financials indicate strained liquidity and limited equity buffer.

2. Key Concerns:

   • Solvency and Liquidity: The company reported net assets of only £100 as of 30 November 2023, a significant decline from £6,134 the prior year, and net current liabilities have widened to £8,167 from £6,134. This suggests ongoing liquidity challenges and potential difficulties in meeting short-term obligations.

   • Reliance on Director Support: The accounts explicitly state the going concern assumption is dependent on continued support from the sole director. This dependency highlights operational fragility and the risk of business discontinuity if director support ceases.

   • Minimal Share Capital and Equity: With share capital of only £1 and negligible shareholders' funds, the company has very limited capital to absorb losses or finance growth, increasing financial vulnerability.

3. Positive Indicators:

   • Timely Filing and Compliance: The company has filed its accounts and confirmation statements on time with no overdue filings, indicating regulatory compliance and sound governance practices in this regard.

   • Asset Investment: The acquisition of tangible fixed assets (motor vehicles and office equipment) totaling £8,267 suggests some investment in operational capacity.

   • Single Director with Significant Control: The director holds 50-75% ownership and voting rights, potentially facilitating swift decision-making.

4. Due Diligence Notes:

   • Review Cash Flow and Debt Structure: Investigate detailed cash flow statements and creditor terms to understand liquidity management and repayment schedules.

   • Director Support and Financial Arrangements: Clarify the nature, extent, and duration of the director’s financial support underpinning the going concern statement.

   • Business Model and Revenue Generation: Examine turnover trends and profitability metrics to assess operational sustainability, given limited financial disclosures.

   • Explore Potential Contingent Liabilities: Assess any off-balance sheet obligations or pending liabilities not reflected in the micro-entity accounts.

   • Confirm Absence of Director Conduct Issues: Verify the director’s records for any disqualifications or regulatory sanctions.

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