BABEL ACADEMY CONSULTING AND MEDIA SERVICES LTD

Executive Summary

Babel Academy Consulting and Media Services Ltd is a small, privately controlled company showing improved net current assets and compliance with filing requirements, indicating a generally stable financial position. However, the company’s limited cash reserves, significant increase in trade debtors, and sole director ownership warrant closer review to ensure liquidity and governance robustness. Overall, the company presents a low to medium risk profile for investors at this stage.

BABEL ACADEMY CONSULTING AND MEDIA SERVICES LTD - Analysis Report

Company Number: 12949333

Analysis Date: 2025-07-29 17:39 UTC

1. Risk Rating: LOW to MEDIUM
   The company demonstrates a positive net asset position and net current assets, with no overdue filings or indications of insolvency. However, the relatively small scale of operations, limited equity base, and modest cash reserves suggest some sensitivity to financial shocks.

2. Key Concerns:

• Reliance on a single director/owner who holds 75-100% control, which may limit governance and increase key-person risk.
• Fluctuation in cash balances, notably a decrease from £12,804 in 2023 to £7,347 in 2024, which may indicate liquidity pressures despite improved net current assets.
• Concentration of activities in niche sectors (education support, media representation, and management consultancy), which might limit diversification and expose the company to sector-specific risks.

3. Positive Indicators:

• The company shows improving net current assets, increasing from £984 in 2023 to £10,029 in 2024, indicating better short-term financial health.
• No overdue filings for accounts or confirmation statements, reflecting compliance with regulatory requirements.
• Consistent employment level (1 employee) suggests operational stability without significant expansion pressures.
• The company benefits from exemption from audit requirements due to its small size, which reduces administrative burden and costs.

4. Due Diligence Notes:

• Review detailed profit and loss data to assess profitability trends, as only balance sheet information is provided.
• Investigate the nature and collectability of trade debtors, which increased significantly in 2024 (£10,719 from £1,593), to ensure no risk of bad debts.
• Verify the sustainability of cash flow given the reduction in cash holdings and the composition of current liabilities, including taxation and social security obligations.
• Assess the director’s background and related party transactions to understand governance and potential conflicts of interest.
• Confirm the accuracy of the registered office address, as two addresses are noted (Wimbledon and Regents Park Road).