TWO EIGHT ZERO FIVE CONSULTANCY LTD

Executive Summary

TWO EIGHT ZERO FIVE CONSULTANCY LTD operates as a micro-entity with limited financial resources but maintains a positive net current asset position and regulatory compliance. While the company appears solvent on a balance sheet basis, its very low equity and minimal operational scale suggest moderate risk, warranting further investigation into cash flow and business sustainability before investment.

TWO EIGHT ZERO FIVE CONSULTANCY LTD - Analysis Report

Company Number: 13538474

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

1. Risk Rating: MEDIUM
   The company shows a positive net current asset position and modest growth in shareholders’ funds; however, the absolute values are very low, indicating a fragile financial base typical of a micro-entity startup. Limited scale and minimal equity buffer elevate solvency risk moderately.

2. Key Concerns:

• Very Low Shareholders’ Funds: Equity rose from £32 to £785 over three years, still minimal and indicating limited capital cushion against losses.
• Thin Working Capital Margin: Net current assets are positive but modest (£1,105 in 2024), suggesting limited buffer for operational liquidity shocks.
• No Employees and Micro Scale: The business employs no staff and operates at micro scale, which may indicate limited operational capacity and potential dependence on the sole director.

3. Positive Indicators:

• Consistent Positive Working Capital: Current assets exceed current liabilities each year, showing the company can meet short-term obligations as per balance sheet.
• No Overdue Filings: Accounts and confirmation statements are filed timely, indicating compliance with regulatory obligations.
• Director Control and Stability: The sole director, who is also the 100% shareholder, has maintained the company since incorporation without changes, signaling stable governance.

4. Due Diligence Notes:

• Review detailed cash flow statements if available to assess actual liquidity dynamics beyond balance sheet snapshots.
• Investigate nature of current liabilities and creditors to understand payment terms and any concentration risks.
• Evaluate revenue streams and business model sustainability given no employees and micro scale classification.
• Confirm no contingent liabilities or pending regulatory issues not disclosed in the accounts.