THE LEO CONSULTING LIMITED

Executive Summary

THE LEO CONSULTING LIMITED is a recently established micro-entity with a deteriorating financial position and no turnover, resulting in negative equity and liquidity concerns. The current financials do not support extending credit without mitigation, given the lack of operational cash flow and weak balance sheet. Ongoing monitoring of trading performance and financial restructuring is essential before reconsidering credit facilities.

THE LEO CONSULTING LIMITED - Analysis Report

Company Number: 14216873

Analysis Date: 2025-07-29 20:08 UTC

1. Credit Opinion: DECLINE
   THE LEO CONSULTING LIMITED shows a weak financial position with negative net current assets and net liabilities worsening significantly from £-1,432 in mid-2023 to £-6,877 at the end of 2024. The lack of turnover and persistent negative equity raises concerns about the company’s ability to repay any credit extended. The company is very young, incorporated in 2022, with minimal asset base and no trading income reported, indicating limited operational activity or revenue generation to support debt servicing. The directors appear committed, but the financial data suggests the company is not currently creditworthy without substantial improvement or external support.

2. Financial Strength:
   The balance sheet reveals a micro-entity with total net liabilities of £6,877 as of 31 December 2024, deteriorating from a slightly negative position a year earlier. Current liabilities increased to £5,446, while current assets are effectively zero, resulting in negative working capital. The company’s fixed assets are nil, and it lacks tangible or intangible assets that could secure lending. Shareholders’ funds are negative, reflecting accumulated losses or capital deficits. This indicates a fragile financial structure unable to absorb shocks or finance growth internally.

3. Cash Flow Assessment:
   There is no reported turnover or cash inflows for the latest periods, and the negative net current assets suggest liquidity issues. Without operational income, the company likely relies on shareholder funding or external financing to meet short-term obligations. The rise in current liabilities without corresponding current assets or cash reserves implies potential difficulties in meeting creditor payments as they fall due. The company’s cash flow position is weak, with limited working capital and no visible source of liquidity.

4. Monitoring Points:

• Monitor future turnover and profitability to assess operational viability.
• Watch for improvements in net current assets and reduction of liabilities.
• Review any new financing or shareholder injections supporting liquidity.
• Track director and PSC changes for any shifts in management strategy or control.
• Ensure timely filing of accounts and confirmation statements to maintain compliance and transparency.