SRS CONSULTING LIMITED

Executive Summary

SRS CONSULTING LIMITED faces high financial risk due to a sharp decline in net assets and a significant liquidity deficit as of the end of 2023. While compliance with filing obligations is current and management appears stable, the company's solvency issues and reliance on intra-group funding warrant thorough investigation before any investment decision. Further due diligence should focus on liquidity recovery plans and intra-group creditor arrangements.

SRS CONSULTING LIMITED - Analysis Report

Company Number: 13105122

Analysis Date: 2025-07-20 12:06 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns as evidenced by substantial net current liabilities and negative shareholders' funds in the latest financial year. The rapid deterioration from positive net assets in 2022 to a large net liability position in 2023 signals increased financial distress.

2. Key Concerns:

• Severe Negative Net Current Assets: The company’s net current assets swung from a positive £16,954 in 2022 to a negative £74,879 in 2023, driven by current liabilities of £83,257 against current assets of only £8,378. This indicates a pronounced liquidity shortfall and potential inability to meet short-term obligations.
• Negative Shareholders’ Funds/Net Assets: Shareholders’ funds deteriorated from a positive £16,954 in 2022 to a negative £74,880 in 2023, reflecting accumulated losses and erosion of the equity base which heightens solvency risk.
• High Amounts Owed to Group Undertakings: Current liabilities include £54,961 owed to group undertakings, suggesting reliance on intra-group financing which may not be sustainable if group entities face their own financial pressures.

3. Positive Indicators:

• No Overdue Filings: The company’s accounts and confirmation statements are up to date, indicating compliance with filing requirements and governance responsibilities.
• Small Company Exemption: The company benefits from small company reporting exemptions, reducing administrative burden and costs.
• Consistent Director and Management: The sole director has been in position since incorporation, suggesting stable management continuity.

4. Due Diligence Notes:

• Investigate the nature and terms of the intra-group liabilities (£54,961) to determine repayment expectations and any potential for restructuring or conversion to equity.
• Review cash flow projections and working capital management plans to assess the company’s ability to improve liquidity and meet short-term obligations.
• Examine the causes of the significant increase in current liabilities in 2023, including any creditor pressures or contingent liabilities not disclosed.
• Assess any underlying operational issues impacting profitability that have contributed to accumulated losses and erosion of shareholders’ funds.
• Confirm the absence of any director disqualification or regulatory issues not evident from the data provided.