TRCS CONSULTING LTD

Executive Summary

TRCS CONSULTING LTD, a micro-entity active since 2021, demonstrates a notable decline in net assets and working capital in its most recent financial year, which raises medium-level solvency and liquidity concerns despite compliance with regulatory filings. The company's operational scale is minimal with one employee and concentrated ownership, suggesting low fixed costs but potential governance risks. Further investigation into cash flows, asset trends, and ownership structure is warranted to fully assess financial stability and operational viability.

TRCS CONSULTING LTD - Analysis Report

Company Number: 13623805

Analysis Date: 2025-07-29 18:26 UTC

1. Risk Rating: MEDIUM
   The company shows a materially diminished net asset position in its latest financial year compared to prior years, with net assets falling from £5,226 in 2023 to only £663 in 2024. While still positive, this sharp decline signals potential solvency and liquidity risks if the trend continues. The micro-entity status and minimal employee count limit the complexity of operations but also restrict financial resilience.

2. Key Concerns:

• Significant drop in net current assets and net assets during the latest reported year, indicating weakening financial stability.
• Very low absolute current assets (£10,800) barely exceeding current liabilities (£10,137), suggesting limited liquidity buffer.
• Heavy ownership concentration (75-100%) by a single director who also controls appointment/removal of directors, raising governance and succession risk.

3. Positive Indicators:

• The company remains active and compliant with filing deadlines, with no overdue accounts or confirmation statements, indicating good regulatory compliance.
• The business employs only one person, reflecting low fixed personnel costs, which could aid operational flexibility.
• The company is classified as a micro-entity, enabling simplified filing and possibly lower administrative burdens.

4. Due Diligence Notes:

• Investigate reasons behind the sharp decline in net assets and working capital in the latest year; assess if this is a one-off event or indicative of ongoing financial stress.
• Review cash flow statements and creditor payment terms to evaluate liquidity management and short-term solvency more thoroughly.
• Examine the concentration of control and any related party transactions or conflicts of interest given the sole shareholder/director status.
• Confirm the nature and sustainability of revenue streams within the SIC code 9100 (support activities for petroleum and natural gas mining), considering sector-specific risks.