TRANSITION PROJECTS LTD

Executive Summary

Transition Projects Ltd is a newly formed micro-entity exhibiting a solid net asset position and good compliance with filing requirements. While early-stage operational risks and limited capitalization warrant caution, the company’s current liquidity and governance framework suggest a low immediate risk profile. Further financial performance data and operational developments should be monitored to confirm sustainable stability.

TRANSITION PROJECTS LTD - Analysis Report

Company Number: 15436568

Analysis Date: 2025-07-20 14:50 UTC

1. Risk Rating: LOW
   Justification: Transition Projects Ltd is a newly incorporated micro-entity with a strong net asset position relative to its current liabilities and no overdue filings. The financials show positive net current assets and shareholders' funds, indicating initial financial stability.

2. Key Concerns:

• Limited Operating History: Incorporated in January 2024, the company has less than two years of operational history, which limits visibility on sustainable cash flow and profitability.
• Single Employee/Director Dependence: The average number of employees is one (including directors), which may pose operational risks due to limited human resources.
• Modest Share Capital and Fixed Assets: Share capital is minimal (£105), and fixed assets are negligible (£667), suggesting limited capitalization and physical resources to support growth or absorb shocks.

3. Positive Indicators:

• Healthy Working Capital: The company’s current assets (£71,625) significantly exceed current liabilities (£20,886), yielding net current assets of £50,739, which supports short-term liquidity.
• No Filing or Compliance Issues: Both accounts and confirmation statements are filed on time with no overdue status, indicating good corporate governance and regulatory compliance.
• Clear Ownership and Control: One director (Mr. Andrew James Forbes) holds significant control (25-50% shares and voting rights) and is actively involved in management, which can streamline decision-making.

4. Due Diligence Notes:

• Review detailed profit and loss data once available to assess revenue generation, cost structure, and profitability trends.
• Investigate the nature and reliability of current assets, particularly cash and receivables, to confirm liquidity quality.
• Monitor any changes in staffing or director involvement to evaluate operational capacity and risk concentration.
• Assess the company's business plan and client base within the management consultancy sector (SIC 70229) for market viability.
• Confirm absence of director disqualifications or any adverse regulatory history beyond initial filings.