CompaniesInTheUK

STS CONSULTANCY LIMITED

Company number NI057264 ·

Active

This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.

Risk Assessment: STS CONSULTANCY LIMITED

1. Risk Rating: MEDIUM

Justification: While the company is technically solvent with positive net assets and current filings, there is a pronounced long-term erosion of the asset base (81.6% decline in net assets from £13,285 in 2015 to £2,446 in 2024), extremely small scale of operations, and significant year-to-year volatility. The business appears sustainable at a minimal operational level but presents material concerns regarding its diminishing financial resilience.

2. Key Concerns

Concern 1: Sustained Erosion of Net Assets

The company has experienced a consistent decline in net assets over the available 10-year history, falling from £13,285 (2015) to £2,446 (2024). This trajectory suggests the business is either not generating sufficient retained profits to rebuild its balance sheet, or funds are being extracted faster than they are being earned. The 2023 figure of just £624 represents a near-zero equity position before partial recovery in 2024.

Concern 2: Minimal Financial Scale and Resilience

With total assets of only £3,696 and net assets of £2,446, the company operates at an exceptionally small scale. A single unexpected liability or bad debt could push the company into a net liability position. The absolute values provide virtually no buffer against operational disruptions or trading downturns.

Concern 3: Volatility and Inconsistent Performance

Year-to-year fluctuations are significant — net assets swung from £5,184 (2020) down to £1,324 (2019), up to £2,478 (2022), down to £624 (2023), then back to £2,446 (2024). This volatility in a tax consultancy business, which typically has predictable fee income, raises questions about revenue stability or inconsistent director drawings.

3. Positive Indicators

  • Regulatory Compliance: Accounts and confirmation statements are filed on time with no overdue status. The latest accounts were approved 20 June 2025, indicating ongoing administrative diligence.

  • Adequate Short-Term Liquidity: The current ratio stands at approximately 2.96x (£3,696 current assets versus £1,250 current liabilities), suggesting the company can meet its near-term obligations.

  • Long Operating History: Incorporated in 2005, the company has operated for nearly 20 years, demonstrating survival through multiple economic cycles.

  • Positive Net Assets: The company remains solvent with net assets of £2,446 and no indication of insolvency or creditor pressure.

  • No Disqualification Records: The sole director has no recorded disqualification orders.

4. Due Diligence Notes

Item Detail
Profitability Micro-entity accounts do not disclose turnover or profit/loss. It is impossible to determine whether the company is profitable or operating at a loss. Request management accounts or tax returns to assess revenue trends.
Director Remuneration The declining net assets may reflect director salary/drawings exceeding profits. Clarify the director's compensation structure and whether the erosion reflects extraction rather than trading losses.
Related Party Balances The creditors figure of £1,250 may include director loans. Understanding the nature of these liabilities is critical — owed to HMRC would be more concerning than owed to the director.
Revenue Concentration As a single-employee tax consultancy, assess client concentration risk. Loss of one or two key clients could be existential.
Cash Position Cash data is only available for 2015 (£3,775). Current cash levels are unknown. Given total current assets of £3,696, the cash position may be limited.
Future Intentions The 2023 nadir and 2024 partial recovery warrant discussion — is the director committed to continuing the business, or winding it down?
Fixed Assets No fixed assets are reported across any year, which is typical for a consultancy but confirms the business has no tangible asset backing.

Perspective: Investment Risk Assessor · Model: glm-5.1 · Generated 13 August 2026