Company Number: 12565515

Analysis Date: 2025-07-20 12:23 UTC

1. Risk Rating: HIGH
   The company shows a significant deterioration in financial position over the latest financial year, with net liabilities of £93,314 as of 30 April 2024, compared to net assets of £69,310 the previous year. This indicates a serious solvency risk, as liabilities exceed assets by a large margin.

2. Key Concerns:

• Severe Negative Net Current Assets: The company’s current liabilities (£111,910) are substantially higher than its current assets (£16,499), resulting in a negative working capital of £95,411. This suggests liquidity stress and potential difficulty meeting short-term obligations.
• Sharp Decline in Financial Health: The drastic change from positive net assets and working capital in 2023 to significant net liabilities and negative working capital in 2024 signals operational or financial distress.
• Limited Share Capital and Equity Cushion: The share capital is nominal (£1.00), and shareholder funds are deeply negative, indicating limited equity buffer to absorb losses or support financing.

3. Positive Indicators:

• No Overdue Filings: The company is current with its accounts and confirmation statement filings, suggesting compliance with statutory requirements.
• Stable Leadership and Control: The company has consistent directors and persons of significant control since incorporation, which may imply stable governance.
• Micro-Entity Reporting: Filing under micro-entity provisions reduces administrative burden and may suggest a smaller, more focused operation.

4. Due Diligence Notes:

• Examine Cash Flow Statements: To understand if the negative working capital is a temporary timing issue or indicative of ongoing cash flow problems.
• Review Recent Business Activities: Investigate reasons behind the sharp increase in liabilities and decline in assets—e.g., losses, increased borrowing, unpaid creditors.
• Assess Going Concern Status: Confirm whether directors have disclosed any going concern issues or plans to mitigate financial distress.
• Verify Operational Model and Revenue Streams: Given the SIC code (Other education not elsewhere classified), it is important to understand the company’s business model and revenue sustainability.
• Director and PSC Background Checks: Although no disqualifications are noted, verifying director reputations and any related party transactions is prudent.