ADVANTAGE TUTORING LIMITED

Executive Summary

Advantage Tutoring Limited is currently in a weak financial position with negative net assets and working capital, indicating liquidity and solvency concerns. The limited scale and recent incorporation, combined with financial deterioration, present a high credit risk. Without immediate improvement or additional support, extending credit is not advisable at this stage.

ADVANTAGE TUTORING LIMITED - Analysis Report

Company Number: 13667104

Analysis Date: 2025-07-20 11:42 UTC

1. Credit Opinion: DECLINE
   Advantage Tutoring Limited exhibits a deteriorated financial position as of the latest financial year ending 31 October 2023. The company’s net liabilities of £2,838 and negative working capital of £3,204 raise concerns about its ability to meet short-term obligations. Given the micro-entity scale and limited financial buffer, the risk of default on credit facilities is elevated. The absence of audit and limited historical financial data (only two years) further restricts confidence in management’s capacity to sustain operations or improve creditworthiness in the near term.

2. Financial Strength:
   The balance sheet shows a marked decline compared to the prior year. Fixed assets remain negligible (£366), while current assets have fallen significantly (from £4,149 to £1,857). Current liabilities increased by approximately 43% from £3,537 to £5,061, indicating rising short-term debt or payables pressure. The equity position swung from a positive £1,100 to a negative £2,838, reflecting accumulated losses or capital erosion. This negative net asset position undermines the company’s financial resilience and limits leverage capacity.

3. Cash Flow Assessment:
   Working capital is negative, which suggests liquidity stress. The company has only one employee, implying low overheads, but current liabilities exceed current assets by a material margin, indicating potential difficulties in meeting immediate creditor demands. No off-balance sheet liabilities were disclosed, but the limited cash or equivalents inferred from current assets (likely mostly receivables or minor cash balances) may constrain operational flexibility and ability to service debt.

4. Monitoring Points:

• Monthly cash flow and creditor aging to detect liquidity deterioration early.
• Any changes in shareholder funding or director loans that might support working capital.
• Timely filing of accounts and confirmation statements to maintain compliance and transparency.
• Business development and revenue trends, as future profitability is crucial to restore equity and repay obligations.
• Stability of the sole director and key person risk given the single-employee structure.