SYDE STONE LTD

Executive Summary

SYDE STONE LTD is a small, active private limited company engaged in management consultancy, showing positive net assets but persistent working capital deficits and very low cash reserves as of the latest accounts. While regulatory compliance is current and governance stable, liquidity pressures and short-term obligations warrant close monitoring to ensure ongoing operational stability. Further due diligence on cash flows and debtor quality is recommended to assess solvency risk more precisely.

SYDE STONE LTD - Analysis Report

Company Number: 13791719

Analysis Date: 2025-07-20 16:49 UTC

1. Risk Rating: MEDIUM
   The company demonstrates ongoing operations with positive net assets; however, persistent net current liabilities and very low cash balances indicate moderate liquidity risk. The small scale and limited financial buffer suggest potential solvency concerns if short-term liabilities crystallize rapidly.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of approximately £2,100 at the end of 2023, showing a working capital deficit that may impact its ability to meet short-term obligations comfortably.
• Minimal Cash Reserves: Cash on hand is only £128 as of 2023, a significant decline from £16,231 in 2022, which raises concerns about immediate liquidity and operational cash flow.
• Declining Debtors: Trade debtors reduced from £25,053 in 2022 to £15,066 in 2023 with an increase in trade debtors to £8,000 (from zero), suggesting a shift in receivables composition that requires monitoring for collectability risk.

3. Positive Indicators:

• Positive Net Assets and Shareholder Funds: Despite low equity, net assets improved from £118 in 2022 to £690 in 2023, indicating some retained earnings accumulation.
• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, reflecting good governance in regulatory compliance.
• Stable Director and PSC Structure: The director and persons with significant control are identified and appear stable, with no indications of disqualification or governance concerns.

4. Due Diligence Notes:

• Investigate the reasons behind the sharp reduction in cash balances and whether this reflects operational cash flow issues or timing differences.
• Review the aged analysis and collectability of trade debtors, especially the new £8,000 trade debtor balance.
• Assess the nature and due dates of current liabilities (£17,294) to understand short-term payment obligations and any potential refinancing or settlement risks.
• Clarify the company's revenue trends and profitability since turnover data is not explicitly provided.
• Confirm the business model sustainability given limited asset base and employee count (2 employees) in a management consultancy sector.