ADVANCE TRAINING AND CONSULTING LTD

Executive Summary

Advance Training and Consulting Ltd shows weak financial health with negative working capital and net assets, reflecting limited liquidity and operational scale. The company’s inability to cover short-term liabilities raises concerns about creditworthiness. We recommend declining credit facilities until material financial improvements are demonstrated.

ADVANCE TRAINING AND CONSULTING LTD - Analysis Report

Company Number: 14436935

Analysis Date: 2025-07-29 20:20 UTC

1. Credit Opinion: DECLINE
   Advance Training and Consulting Ltd demonstrates very weak financial health based on the latest financial statements. The company reports negative net current assets of £1,417 for the year ending 31 October 2024 (versus -£170 in 2023), indicating current liabilities exceed current assets and raising concerns about short-term liquidity. The company is a micro-entity with minimal asset base and no employees, suggesting limited operational scale and capacity to generate cash flows. Given these factors and absence of profitability data or cash flow statements, the risk of default or inability to meet credit obligations is elevated. Without stronger financials or external security, credit extension is not recommended.

2. Financial Strength: Weak
   The balance sheet reflects negative working capital, with current liabilities (£2,544) exceeding current assets (£1,127). Net assets and shareholders' funds are negative at -£1,417. This deterioration from prior year (-£170) indicates increasing liabilities or reduced assets. The company holds no fixed assets and has no employees, which limits its operational leverage to improve financial position. The micro-entity classification confirms a very small scale operation. Overall, the company’s financial resilience is poor, with very limited equity buffer and no apparent cash reserves.

3. Cash Flow Assessment: Inadequate Liquidity
   Current liabilities surpass current assets, implying the company may struggle to meet short-term obligations as they fall due. The absence of employees and minimal current assets point to limited ongoing business activity or revenue generation. Working capital is negative, indicating potential reliance on external funding or director loans to sustain operations. Without detailed cash flow statements, the liquidity risk is presumed high, reducing confidence in debt servicing capability.

4. Monitoring Points:

• Watch for improvements in net current assets and net equity to signal better financial stability.
• Monitor accounts filings for any significant changes in liabilities or assets.
• Assess any incoming cash flow or revenue growth that could improve liquidity.
• Review directors’ reports or confirmation statements for operational updates or restructuring plans.
• Track any changes in business scale, such as hiring employees or expanding asset base.