TIM ADAMS CONSULTING LIMITED

Executive Summary

Tim Adams Consulting Limited is a small private consultancy with compliance in statutory filings but shows signs of financial strain, notably negative working capital and minimal net assets. The recent large dividend payment has significantly reduced equity, raising liquidity and solvency questions. Further analysis of cash flows and dividend policy is recommended to clarify financial stability and operational sustainability.

TIM ADAMS CONSULTING LIMITED - Analysis Report

Company Number: 13184148

Analysis Date: 2025-07-29 16:19 UTC

1. Risk Rating: MEDIUM
   Justification: The company is operational and compliant with filing requirements, but the financial data indicates net current liabilities and very low net assets, suggesting potential short-term liquidity concerns and weak equity buffer.

2. Key Concerns:

• Negative net current assets for the last three years (£-163 in 2025), indicating current liabilities slightly exceed current assets, which could impact the company’s ability to meet short-term obligations.
• Declining net assets from £148 in 2024 to £7 in 2025, pointing to erosion of equity, possibly due to dividend payments exceeding profits in the latest year.
• Absence of debtors in the latest year and a reduction in cash balances from £14,778 (2024) to £8,185 (2025), signaling potential cash flow tightening.

3. Positive Indicators:

• The company is up to date on statutory filings (accounts and confirmation statements) with no overdue issues, reflecting operational compliance and governance discipline.
• Directors have remained consistent since incorporation, potentially indicating stable management.
• The company operates in management consultancy, a sector generally requiring low fixed asset investment (tangible fixed assets are minimal at £210), which may reduce capital expenditure risks.

4. Due Diligence Notes:

• Investigate the reasons behind the dividend payments (£10,750) in the 2025 financial year that nearly wiped out retained earnings, to assess if this is sustainable or a one-off event.
• Review cash flow statements (not provided) to evaluate operating cash flow trends and liquidity management.
• Confirm if the negative net current assets have been addressed via credit facilities, shareholder loans, or other financing arrangements.
• Assess the client base and revenue stability given the disappearance of trade debtors in the latest period, which could indicate changes in billing or collection practices.