STUART HOPE RAIL CONSULTANCY LIMITED

Executive Summary

Stuart Hope Rail Consultancy Limited is a recently established micro-entity demonstrating signs of financial strain, notably negative working capital and near-zero net assets. While the company maintains regulatory compliance and benefits from streamlined governance, its limited scale and eroding equity present elevated solvency and liquidity risks. Further investigation into liabilities and operational viability is recommended to fully assess investment risk.

STUART HOPE RAIL CONSULTANCY LIMITED - Analysis Report

Company Number: 13889796

Analysis Date: 2025-07-20 18:47 UTC

1. Risk Rating: HIGH
   The company exhibits a precarious financial position with net current liabilities, minimal net assets, and a significant decline in shareholders' funds within a short operational period.

2. Key Concerns:

• Negative Working Capital: As of the latest financial year ending February 2024, current liabilities (£51,235) exceed current assets (£48,098), resulting in net current liabilities of £3,137. This suggests potential liquidity stress and challenges in meeting short-term obligations.
• Diminished Net Assets and Shareholders’ Funds: Net assets have dropped sharply from £1,303 in 2023 to £29 in 2024, indicating erosion of equity and financial buffer. Such a low equity base increases solvency risk.
• Limited Operational History and Scale: Incorporated in 2022, the company is in its second year with a single employee and micro-entity status, restricting financial transparency and indicating a small scale which may impact sustainability and ability to absorb shocks.

3. Positive Indicators:

• No Overdue Filings: Both accounts and confirmation statements are filed on time, reflecting compliance with statutory filing requirements.
• Director Control and Stability: Stuart Terence Hope is the sole director and significant controller (75-100% ownership and voting rights) which may facilitate swift decision-making and operational control.
• Micro-entity Reporting: Simplified reporting reduces administrative burdens and costs, which may be beneficial for a small consultancy start-up.

4. Due Diligence Notes:

• Investigate the nature and timing of current liabilities to assess potential short-term cash flow pressures and creditor relationships.
• Review the detailed notes or management commentary (if available) for explanations on the sharp decline in net assets within one year.
• Evaluate the company's revenue streams, client base, and contracts to determine operational sustainability beyond the initial start-up phase.
• Confirm absence of contingent liabilities or off-balance-sheet risks not evident in the micro-entity filings.
• Assess related-party transactions considering the director is the sole significant controller, to ensure proper governance and arm’s length dealings.