AI ACADEMY LTD.

Executive Summary

AI Academy Ltd. is a recently incorporated micro-entity with a strong net asset position and no regulatory compliance issues. While its limited operating history and concentrated ownership present some risks, the current financial snapshot indicates sound solvency and liquidity. Further due diligence on cash flow and contingent liabilities is recommended to support investment decisions.

AI ACADEMY LTD. - Analysis Report

Company Number: 14719147

Analysis Date: 2025-07-29 20:23 UTC

1. Risk Rating: LOW
   The company demonstrates strong net asset backing relative to liabilities, no overdue filings, and clear ownership and governance structure. Its micro-entity size and recent incorporation limit historical financial data but current indicators suggest low solvency and liquidity risk.

2. Key Concerns:

• Limited operating history: Incorporated in March 2023, the company has less than two years of operational track record, restricting trend analysis or assessment of consistent cash flows.
• Reliance on a single controlling shareholder: Spyro International Ltd. holds 75-100% ownership and voting rights, concentrating control and decision-making. This could present governance or strategic risk if the parent entity's priorities shift.
• Provisions for liabilities (£6,500) and accruals (£1,500): Though small in absolute terms, these indicate potential upcoming obligations that should be monitored to ensure timely settlement.

3. Positive Indicators:

• Healthy balance sheet with net assets of £264,500 and strong working capital (£125,000) relative to current liabilities (£15,000). This suggests good short-term liquidity and solvency.
• No overdue statutory filings or accounts, indicating good regulatory compliance and governance discipline.
• Employs 5 staff and operates in a growth sector (AI education and training), potentially supporting sustainable operations and market relevance.
• Website presence and contact information corroborate active trading status and transparency.

4. Due Diligence Notes:

• Review detailed cash flow statements and management accounts to confirm liquidity beyond balance sheet snapshot.
• Clarify nature and timing of provisions and accruals to assess contingent liabilities or contractual commitments.
• Assess business model viability given limited operating history and market competition in AI education sector.
• Verify relationship and financial dependence on controlling shareholder Spyro International Ltd., including any intercompany transactions or guarantees.
• Confirm staffing plans and operational scalability aligned with strategic growth forecasts.