Risk Analysis: PROMEDIA CONSULTING LIMITED

1. Risk Rating: MEDIUM

Justification: The company demonstrates solid net asset growth and adequate liquidity, but significant balance sheet volatility, opaque micro-entity disclosures, and concentrated control in a single individual introduce material uncertainty. The dramatic swings in total assets year-on-year—ranging from £286k to £1.085M over the review period—are atypical for a two-employee consulting firm and warrant scrutiny regarding their composition and recoverability.

2. Key Concerns

Concern 1: Volatile Asset Base

Total assets have fluctuated dramatically: £286k (2018) → £950k (2020) → £494k (2021) → £1.085M (2022) → £906k (2023) → £1.06M (2024). For a micro-entity with two employees in information services, this volatility suggests the balance sheet is dominated by fluctuating debtor balances or potentially related-party receivables. Without a breakdown of current assets (debtors vs. cash), the quality and recoverability of these assets cannot be confirmed. The jump from £494k to £1.085M between 2021 and 2022—a 120% increase—particularly warrants explanation.

Concern 2: Rising Creditor Balances with Limited Disclosure

Creditors due within one year have grown from £54k (2018) to £442k (2024)—an approximately eightfold increase. While the current ratio remains healthy at approximately 2.36x, the composition of these creditors is unknown. Micro-entity accounts do not require disclosure of whether this represents trade creditors, corporation tax, deferred income, or director's loans. If a significant portion constitutes deferred income, revenue recognition practices merit examination. If related-party loans, the company's true independence is questionable.

Concern 3: Single-Person Control and Recent Governance Changes

Mr Antony Craig Goldman holds over 75% of shares, voting rights, and the right to appoint/remove directors. The resignation of Dr Samantha Goldman as both director and secretary on consecutive days in November 2025 (14th and 15th respectively) leaves Mr Goldman as the sole director. This concentration of control, combined with the registered office being care of an accounting firm (ABL), suggests minimal operational infrastructure. Key-person dependency risk is significant—if Mr Goldman becomes incapacitated or unavailable, business continuity is uncertain.

3. Positive Indicators

• Consistent Net Asset Growth: Shareholders' funds have grown from £228k (2018) to £640k (2024), representing approximately 181% growth over six years. This indicates profitable trading and retention of earnings within the business.

• No Long-Term Debt: The balance sheet shows zero creditors due after more than one year across all periods reviewed. The company is not leveraging long-term debt to finance operations, reducing solvency risk.

• Regulatory Compliance: Accounts and confirmation statements are filed on time with no overdue filings. The company has maintained an active status for over 20 years since incorporation in 2004, demonstrating operational longevity.

• Adequate Working Capital: Net current assets of £602k against current liabilities of £442k provide a comfortable liquidity buffer. Even if a portion of current assets proves irrecoverable, the company retains a meaningful margin of safety.

4. Due Diligence Notes

1. Current Asset Composition: Request a detailed breakdown of the £1.02M in current assets. Specifically, determine the split between trade debtors, intercompany receivables, related-party loans, and cash. Cash was disclosed as £423k (2021) and £206k (2019), but is absent from recent filings—understanding the current cash position is essential.

2. Creditor Analysis: Obtain clarification on the composition of the £442k in current creditors. Key questions: What portion represents trade payables vs. corporation tax vs. deferred income vs. related-party liabilities? If director's loans exist, are they subordinated or secured?

3. Revenue and Profitability Trends: Micro-entity accounts do not require a profit and loss statement. Request management accounts to assess revenue consistency, margin trends, and the drivers behind the significant asset fluctuations observed between 2020-2022.

4. Recent Officer Changes: Clarify the circumstances of Dr Samantha Goldman's resignation from both director and secretary positions in November 2025. Confirm whether the current "SAMANTHA GOLDMAN, SEC" listing represents the same individual or a separate appointment, and verify the company's governance structure going forward with a sole director.

5. Fixed Asset Increase: Fixed assets rose from £6.6k (2023) to £37.9k (2024)—a fivefold increase. Determine the nature of this investment (equipment, intellectual property, or other) and whether it signals a change in business model or scale.

6. Business Premises: The registered address is care of an accounting firm. Confirm the company's trading address and whether it operates from serviced offices, home addresses, or client sites. This has implications for operational continuity and overhead structure.