STORY & STEER LTD

Executive Summary

Story & Steer Ltd is a small, active IT consultancy with positive working capital but showing a marked reduction in cash and equity over recent years. While regulatory compliance is sound, concerns exist around operational sustainability given no employees and limited financial disclosures. Further investigation into revenue, cash flow, and business model is recommended to fully assess investment risk.

STORY & STEER LTD - Analysis Report

Company Number: 13032632

Analysis Date: 2025-07-29 20:58 UTC

1. Risk Rating: MEDIUM
   Justification: Story & Steer Ltd is a relatively new, small private limited company operating in IT consultancy with modest net current assets and limited equity. The company shows a declining trend in cash reserves and shareholders’ funds over recent years, which may indicate cash flow constraints or operational challenges. However, it remains solvent with current liabilities comfortably covered by current assets.

2. Key Concerns:

• Declining Net Current Assets and Shareholders’ Funds: The company’s net current assets have reduced from £18,538 in 2020 to £1,346 in 2024, indicating a significant erosion of working capital and equity.
• Low Debtor Balances: Debtors are minimal (£24 in 2024), which may imply limited sales on credit but could also reflect low revenue generation or reliance on immediate payments.
• No Employees: The company reports zero employees, which raises questions about operational capacity and sustainability unless it is a sole director-managed consultancy or relies on subcontractors.

3. Positive Indicators:

• Current Assets Exceed Current Liabilities: The company maintains a positive working capital position each year, suggesting it can meet short-term obligations.
• Up-to-date Filings: Accounts and confirmation statements are filed on time, indicating good regulatory compliance and governance.
• Stable Director Leadership: The sole director has been in place since incorporation, providing continuity in management.

4. Due Diligence Notes:

• Investigate Revenue and Profitability: The absence of an income statement and minimal debtor balances warrant review of turnover and profit trends to assess operational viability.
• Clarify Operational Model: Confirm whether the company operates without employees and how services are delivered (e.g., director-managed, subcontracted).
• Examine Cash Flow Trends: The steady decline in cash reserves should be analyzed to determine causes and whether it reflects investment, losses, or other factors.
• Review Related Party Transactions: Large “other creditors” balances (£5,605) relative to trade creditors may indicate loans or payables that need scrutiny for risk exposure.