BIG TIME PRE-PREP LIMITED

Executive Summary

Big Time Pre-Prep Limited exhibits a deteriorating financial position with significant negative net assets and working capital deficits, raising concerns about its ability to meet short-term liabilities. The lack of profitability and equity erosion combined with liquidity constraints leads to a high credit risk profile. Close monitoring of cash flow and creditor management is essential before considering credit facilities.

BIG TIME PRE-PREP LIMITED - Analysis Report

Company Number: 12812812

Analysis Date: 2025-07-20 11:23 UTC

1. Credit Opinion: DECLINE
   Big Time Pre-Prep Limited shows a persistent and worsening net liability position with net assets declining from -£2,598 in 2021 to -£55,684 in 2024. The company's working capital is significantly negative, indicating liquidity stress and potential difficulty in meeting short-term obligations. The micro-entity status and absence of audit limit transparency, but the financials suggest inadequate capitalisation and insufficient cash flow to service debts. Without clear evidence of turnaround or external support, the credit risk is high.

2. Financial Strength:
   The balance sheet reveals a weak financial position. Fixed assets are minimal (£981), while current liabilities have increased substantially to £87,515 in 2024 against current assets of only £31,696, resulting in a net current liability of -£50,578. Total net liabilities have deepened, reflecting ongoing losses or accumulated deficits. Shareholders’ funds are negative, indicating erosion of equity and no buffer to absorb further losses.

3. Cash Flow Assessment:
   Negative working capital and increasing creditor balances point to strained liquidity. Although current assets have grown, they are insufficient to cover current liabilities, suggesting reliance on creditor financing or external funding to sustain operations. The increase in accruals and deferred income also suggests potential timing mismatches in cash flows. The company may face difficulty in meeting immediate payment obligations without additional capital injection or improved cash conversion.

4. Monitoring Points:

• Trend in net current liabilities and net assets on future accounts filings
• Changes in creditor days and payment patterns
• Cash flow statements if available to track operating cash generation
• Any capital injections or director loans to improve liquidity
• Business growth indicators and profitability trends as the company expands employee base
• Directors’ commentary on turnaround plans or refinancing arrangements