WILLOWSTREAM CONSULTING LTD

Executive Summary

WILLOWSTREAM CONSULTING LTD exhibits a high financial risk profile due to persistent negative equity and substantial long-term liabilities, despite maintaining adequate short-term liquidity. While compliance with filing obligations is satisfactory and ownership structure centralized, lack of employees and ongoing capital deficiency raise concerns about operational sustainability. Further investigation into the nature of long-term debts, cash flows, and business operations is essential for a comprehensive risk assessment.

WILLOWSTREAM CONSULTING LTD - Analysis Report

Company Number: 13803198

Analysis Date: 2025-07-29 20:33 UTC

1. Risk Rating: HIGH
   The company demonstrates significant negative net assets and shareholders' funds, indicating an ongoing capital deficiency. Despite current assets exceeding current liabilities, the presence of substantial long-term creditors pushes net assets into negative territory, heightening solvency risk.

2. Key Concerns:

• Persistent Negative Equity: Net assets remained negative (£-28,071 in 2022, improving only slightly to £-14,499 in 2023), reflecting accumulated losses or liabilities exceeding assets.
• Long-Term Liabilities: Creditors due after one year are substantial (£49,756 in 2023), suggesting reliance on long-term debt which may impact future cash flows and solvency.
• No Employees and Limited Operational Data: Zero employees reported for 2022 and 2023 raises questions about operational capacity and sustainability of the business model, especially for a management consultancy that typically requires skilled personnel.

3. Positive Indicators:

• Current Assets Cover Current Liabilities: Positive net current assets (£35,247 in 2023) suggest the company can meet short-term obligations, indicating decent liquidity in the near term.
• Up-to-date Filings: Accounts and confirmation statements are filed on time with no overdue penalties, showing regulatory compliance and good governance practices.
• Single Controlling Shareholder/Director: Concentrated ownership by Mr. Ian McCullagh (75-100% shares and voting rights) may allow for agile decision-making and clear accountability.

4. Due Diligence Notes:

• Examine Nature of Long-Term Creditors: Investigate the terms, counterparties, and repayment schedules of the £49,756 long-term liabilities to assess refinancing or default risk.
• Review Cash Flow Statements: Obtain detailed cash flow data to confirm liquidity and ability to service debts given negative equity.
• Assess Business Model Viability: Clarify how the company operates without employees and how it generates revenue in the management consultancy sector; review client contracts and pipeline.
• Director’s Financial Support: Determine if the director or shareholder provides financial support or guarantees given negative net worth and operational scale.
• Confirm No Undisclosed Related Party Transactions: Given concentrated ownership, verify transactions with related parties to ensure transparency and arm's length dealings.