ACCOUNTANTS WEALTH ACADEMY LIMITED

Executive Summary

The financial data for Accountants Wealth Academy Limited reveals a company under financial strain, with minimal net assets and near breakeven working capital indicating liquidity concerns. While regulatory filings are current and governance appears intact, the sizable director loans and capital erosion raise material solvency risks. Further investigation into cash flows and related-party transactions is recommended before considering investment exposure.

ACCOUNTANTS WEALTH ACADEMY LIMITED - Analysis Report

Company Number: 13191649

Analysis Date: 2025-07-20 14:07 UTC

1. Risk Rating: HIGH
   The company exhibits a high risk profile primarily due to its minimal net assets (£108 at latest year-end), very tight liquidity position with current liabilities nearly equaling current assets, and significant director loan balances that have been substantially written down. These factors suggest vulnerable solvency and potential cash flow distress.

2. Key Concerns:

• Minimal Net Assets and Equity: The company’s net assets have declined sharply from £1,100 in 2021 to just £108 in 2024, indicating erosion of capital and weak financial buffer against liabilities.
• Director Loan Advances and Write-offs: Large unsecured director loans, especially a £26,413 negative balance written off, highlight potential related-party transactions that may obscure the true financial health and raise governance concerns.
• Tight Working Capital and Liquidity: Current assets only slightly exceed current liabilities by £108, leaving almost no margin to cover short-term obligations, signaling liquidity risk.

3. Positive Indicators:

• Compliance with Filing Requirements: The company’s accounts and confirmation statement filings are up to date with no overdue reports, which indicates regulatory compliance and good governance in statutory reporting.
• Active Status with Low Employee Count: The company remains active with a small workforce (2 employees), suggesting a lean operational model that may keep overhead low.
• Experienced Directors and PSCs: Directors and persons with significant control appear stable with longstanding appointments and clear ownership/control structures.

4. Due Diligence Notes:

• Investigate the nature and terms of director loans, especially the rationale behind large write-offs and their impact on company solvency.
• Review underlying cash flow statements and bank reconciliations to assess liquidity beyond balance sheet snapshots.
• Evaluate revenue streams, profitability trends, and business model sustainability given the significant decline in net assets.
• Confirm no contingent liabilities or off-balance-sheet risks that could impair financial stability.
• Assess related-party transactions and potential conflicts of interest given the director loan balances.