Company Number: SC686590

Analysis Date: 2025-07-20 15:27 UTC

Risk Rating: MEDIUM

Justification:
Vantage Advisory Limited, a micro-entity management consultancy incorporated in 2021, shows a decline in net assets from £23,230 in 2023 to £11,453 in 2024, indicating a notable reduction in financial strength. Current liabilities slightly exceed current assets, and the company operates with a very small workforce of two employees, which may impact operational scalability and resilience. No overdue filings or compliance issues are evident, which reduces regulatory risk.

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Key Concerns:

1. Declining Net Assets: The net assets have nearly halved year-on-year, which could suggest operational challenges or losses impacting retained earnings and shareholder equity.
2. Working Capital Tightness: While the company reports positive net current assets (£9,157 in 2024), the current liabilities of £19,817 are significant relative to current assets of £13,349 plus prepayments/ accrued income £15,625, potentially indicating liquidity pressure.
3. Limited Scale and Diversification: As a micro-entity with only two employees and small fixed asset base, the company may be vulnerable to market fluctuations or loss of key personnel, affecting operational stability.

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Positive Indicators:

• Timely Filing and Compliance: Accounts and confirmation statements are filed on time, indicating good governance and regulatory compliance.
• No Indication of Insolvency or Liquidation: The company status is active with no signs of insolvency proceedings or administration.
• Stable Industry Classification: Operating in management consultancy (SIC 70229), a service sector with relatively low capital intensity which may support flexibility.

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Due Diligence Notes:

• Examine detailed profit and loss statements to understand the drivers behind the net asset decline and assess ongoing profitability and cash flow trends.
• Review the composition and aging of current liabilities to evaluate short-term liquidity risks more precisely.
• Investigate client concentration and contract stability to assess revenue sustainability and operational risk.
• Confirm whether the company has any contingent liabilities or off-balance-sheet commitments not evident in the micro-entity accounts.
• Assess directors’ background and track record for any concerns, though no disqualifications or issues are apparent from current data.

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