ASTECH EDUCATION GROUP LTD

Executive Summary

ASTECH EDUCATION GROUP LTD is a recently incorporated micro-entity with minimal assets and a marginal working capital deficit, posing a high solvency and liquidity risk. While compliance with filing requirements is current and ownership is transparent, the company’s very limited operational scale and declining net assets raise concerns about its financial stability and ongoing viability. Further investigation into its liabilities and cash flow is recommended before considering investment.

ASTECH EDUCATION GROUP LTD - Analysis Report

Company Number: 14189834

Analysis Date: 2025-07-29 14:54 UTC

1. Risk Rating: HIGH
   The company shows negative net current assets (£860 deficit) as of the latest financial year, indicating a working capital shortfall. As a micro-entity incorporated recently in 2022, the lack of fixed assets and minimal equity (£860 shareholders’ funds, declining from £100) heightens solvency risk. Its small scale and negative working capital suggest potential liquidity constraints.

2. Key Concerns:

• Negative net current assets: Current liabilities (£37,728) slightly exceed current assets (£36,868), indicating possible short-term liquidity issues.
• Very limited financial history and scale: With incorporation in mid-2022 and only one employee reported, operational stability is uncertain.
• Declining net assets: From £100 in 2023 to a negative £860 in 2024 suggests losses or increased liabilities without corresponding asset growth.

3. Positive Indicators:

• Up-to-date filings: No overdue accounts or confirmation statements, showing compliance with Companies House filing requirements.
• Ownership and control are clear: The majority shareholder and director is identified, which may facilitate decision-making and governance.
• Micro-entity status: Lower regulatory burden, which reduces administrative costs.

4. Due Diligence Notes:

• Investigate the nature of current liabilities and reasons for working capital deficit—are these trade creditors, accrued expenses, or short-term borrowings?
• Assess cash flow forecasts and any external funding or shareholder loans to cover liquidity shortfalls.
• Review business model and revenue generation plans given the minimal fixed assets and small employee base.
• Confirm no director disqualification or governance issues beyond the information provided.
• Verify the accuracy of financial data and whether any contingent liabilities or off-balance sheet risks exist.