XMPLIFY CONSULTING LTD

Executive Summary

Xmplify Consulting Ltd is a small, active consultancy company with a positive net asset position but recent significant reductions in cash and trade debtors raise liquidity concerns. The company’s solvency appears intact, however, fluctuating director loan balances and limited financial disclosure warrant further investigation. The business operates in a low capital intensity sector with consistent filings, supporting operational stability if cash flow issues are managed.

XMPLIFY CONSULTING LTD - Analysis Report

Company Number: 12442794

Analysis Date: 2025-07-29 16:56 UTC

1. Risk Rating: MEDIUM
   The company demonstrates positive net current assets and net asset values but has seen a significant reduction in cash and trade debtors in the latest year. The director’s current account balance swung from a large creditor position to a much smaller one, which may indicate changes in financing or withdrawals. Lack of audit and limited disclosure typical for a small company means financial transparency is limited.

2. Key Concerns:

• Sharp decline in cash from £36,184 (2023) to £13,521 (2024) raises liquidity concerns and potential cash flow volatility.
• Trade debtors dropped dramatically from £1,722 to £10, suggesting possible collection issues or reduction in credit sales.
• Director’s current account creditor balances fluctuate significantly (£24,109 to £1,598), which could imply dependency on director loans or irregular financing arrangements.

3. Positive Indicators:

• Consistent positive net current assets and net asset position indicate solvency at balance sheet date.
• The company is active and up to date on filings — no overdue accounts or confirmation statements observed.
• The company operates in a consultancy sector (SIC 70229) which typically requires low fixed assets (confirmed by minimal tangible assets), reducing financial risk associated with large capital expenditures.
• Retained earnings remain positive, and dividends paid are consistent with profits, indicating some profitability.

4. Due Diligence Notes:

• Investigate the reason for the large drop in cash and trade debtors in the latest financial year and assess ongoing cash flow stability.
• Review director’s current account transactions to understand the nature and sustainability of director loans or repayments.
• Request management accounts or cash flow forecasts to confirm liquidity over the next 12 months.
• Confirm there are no contingent liabilities or off-balance sheet risks given the relatively small provisions for liabilities and deferred tax.
• Evaluate client concentration and contract stability given the consultancy business model and small employee base (1 employee).