Company Number: 12797479

Analysis Date: 2025-07-20 14:00 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates a stable liquidity position with positive net current assets and cash balances exceeding current liabilities. However, the low net asset base and presence of provisions, which have materially increased, warrant cautious monitoring.

2. Key Concerns:

• Rising Provisions for Liabilities: Provisions increased significantly from £1,638 in 2023 to £3,745 in 2024, representing a notable contingent or uncertain liability that could impact solvency if realised.
• Low Net Assets and Shareholders’ Funds: Net assets declined slightly to £296 in 2024, reflecting limited equity buffer relative to liabilities. This thin capital base may constrain financial resilience.
• Single Director and Shareholder Control: The company is wholly controlled by a single director and shareholder, which could present governance risks and reliance on one individual for operational decisions.

3. Positive Indicators:

• Adequate Liquidity Position: Cash at bank increased to £5,941 in 2024, comfortably covering current liabilities of £1,900, indicating the company can meet short-term obligations.
• Timely Filings and Compliance: Accounts and confirmation statements are up to date with no overdue filings, suggesting good regulatory compliance.
• Consistent Employment and Operations: The company has maintained a consistent headcount of one employee, implying operational continuity and controlled overheads.

4. Due Diligence Notes:

• Investigate the nature and cause of increased provisions to assess potential future cash outflows and risks.
• Review detailed profit and loss data (not publicly filed) to understand revenue trends, profitability, and cash flow generation.
• Assess any off-balance sheet liabilities or contingent risks not reflected in the filleted accounts.
• Evaluate governance structure and any potential risks arising from single-person control, including succession planning.
• Confirm the company’s business model viability given its SIC codes in educational support and other unclassified services.