A STAR TUITION AND CONSULTANCY SERVICES LTD

Executive Summary

A STAR TUITION AND CONSULTANCY SERVICES LTD is a very young micro-entity with minimal financial activity and extremely limited capital base. While there are no immediate liabilities or signs of distress, the financial position is fragile with only nominal working capital and equity. Focused efforts on building cash reserves and expanding revenue are essential to strengthen financial health and ensure sustainable growth.

A STAR TUITION AND CONSULTANCY SERVICES LTD - Analysis Report

Company Number: 14174311

Analysis Date: 2025-07-20 15:08 UTC

Financial Health Assessment for A STAR TUITION AND CONSULTANCY SERVICES LTD

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1. Financial Health Score: D

Explanation:
The company is in its early stages of operation (incorporated June 2022) and shows very minimal financial activity. The net current assets and shareholders’ funds are positive but extremely low (£20), indicating a very thin capital base. While there are no liabilities, the scale of assets and equity is minimal. This suggests a fragile financial position typical of a micro-entity start-up still establishing its operations and revenue streams.

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2. Key Vital Signs

• Net Current Assets (Working Capital): £20 (2024) vs £0 (2023)
  Interpretation: A positive but negligible working capital means the company currently has just enough short-term assets (prepayments) to cover short-term liabilities (none recorded). This is a very fragile position; any unexpected expense could cause cash flow strain.

• Current Liabilities: £0 (2024 and 2023)
  Interpretation: No immediate debts due, which is a good sign — the company is not burdened by short-term obligations.

• Net Assets / Shareholders’ Funds: £20 (2024) vs £0 (2023)
  Interpretation: Minimal equity investment or retained earnings. The company has very limited capital to absorb losses or invest in growth.

• Average Number of Employees: 1 (2024)
  Interpretation: Very small headcount, consistent with a micro-entity in early development, which limits operational scale but also keeps overheads low.

• Filing Status: Up to date, no overdue accounts or confirmation statements
  Interpretation: Compliance with statutory obligations is a positive sign of management discipline.

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3. Diagnosis

The company’s financial "vital signs" show the symptoms of a very young, micro-scale educational support service business in its infancy. The balance sheet is extremely thin, with negligible capital and no liabilities, indicating no immediate financial distress but also no significant cushion or growth capital. The presence of a nominal prepayment asset (£20) and no current liabilities suggests limited trading or transactional activity to date.

The lack of material assets or reserves means the company is highly dependent on fresh capital injections or rapid revenue generation to develop a healthy cash flow. This "weak pulse" is typical for a start-up micro-entity and does not indicate distress, but the financial health is fragile and susceptible to shocks or unexpected expenses.

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4. Recommendations

• Build Cash Reserves and Working Capital:
  Strengthen liquidity by injecting additional capital or improving collections and revenue streams. Healthy cash flow is vital to cover operational costs without stress.

• Expand Revenue Generation:
  Focus on scaling the tuition and consultancy services to increase turnover. Early revenue inflows will help build retained earnings and improve equity.

• Cost Control and Efficiency:
  Maintain lean operations to preserve cash, especially given the small scale. Monitor expenses closely to avoid unnecessary cash outflows.

• Financial Monitoring:
  Establish regular financial reviews tracking cash flow, working capital, and profitability to catch any early symptoms of distress.

• Compliance and Governance:
  Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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