Company Number: 13739522

Analysis Date: 2025-07-19 11:52 UTC

1. Credit Opinion: DECLINE
   Ascent Consultancy & Training Ltd shows signs of financial stress with deteriorating liquidity and negative working capital over multiple years, indicating difficulty in meeting short-term obligations. The decline in net assets from £61,279 in 2023 to £38,615 in 2024, combined with increasing current liabilities and provisions, raises concerns about its ability to service debt and sustain operations without external support. Given its micro-entity status, small asset base, and limited cash resources, the company currently lacks the financial strength to comfortably support new credit facilities.

2. Financial Strength:
   The company’s net assets have decreased significantly over the most recent year (£61,279 to £38,615), reflecting a reduction in fixed assets and increased provisions for liabilities. Fixed assets dropped by approximately 25% to £58,562, while current liabilities grew from £5,835 to £9,848, exacerbating the negative net current assets position (-£8,820). The capital and reserves are modest, with no indication of retained earnings or profit generation disclosed due to micro-entity filing exemptions. Overall, the balance sheet shows weakening financial resilience and limited buffer to absorb shocks.

3. Cash Flow Assessment:
   Current assets are very low (£1,028) relative to current liabilities (£9,848), resulting in a net current liability position that signals poor liquidity and potential cash flow constraints. The lack of disclosed profit and loss information limits detailed cash flow analysis, but the negative working capital position indicates the company may struggle to meet short-term commitments from operating cash flows. The increase in provisions further suggests anticipated or contingent outflows that may strain cash resources.

4. Monitoring Points:

• Liquidity ratios and current assets versus liabilities in future filings
• Movement in provisions for liabilities and any contingent liabilities disclosed
• Directors’ commentary on operational performance and cash flow in future reports
• Any changes in ownership structure or capital injections to strengthen equity
• Timely submission of accounts and confirmation statements to monitor compliance and transparency