C A TRAINING LIMITED

Executive Summary

C A Training Limited has demonstrated a financial recovery with positive net assets and improved liquidity after prior deficits. Its small scale and reliance on director funding suggest cautious credit exposure with conditions for ongoing monitoring. The company’s working capital and cash position support near-term obligations but profitability and operational scale need to be observed carefully before increasing credit limits.

C A TRAINING LIMITED - Analysis Report

Company Number: 12526564

Analysis Date: 2025-07-29 13:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   C A Training Limited has exhibited a return to positive net assets and working capital in the latest financial year after two years of negative equity and net current liabilities. The company remains small with modest asset base and limited share capital (£100). The director’s loan account has improved significantly, indicating some capital injection or settlement of previous director advances. However, the company has no employees and limited tangible fixed assets, relying heavily on director management and advances. Given its recent recovery but prior losses and limited scale, credit facilities should be cautiously approved with conditions such as periodic financial review and limits on exposure until further evidence of stable profitability and cash generation is demonstrated.

2. Financial Strength:

• Net assets have improved from a deficit of £101k in 2023 to a positive £254k in 2024, driven primarily by improved working capital (+£226k) and reduction in liabilities.
• Shareholders’ funds moved from negative £201k to positive £154k (excluding profit & loss reserve), indicating capital injection or retained earnings recovery.
• Fixed assets are minimal (£34) and declining, reflecting no significant investment in long-term assets.
• The company’s balance sheet remains small and fragile; total current liabilities stand at £1,064k with current assets of £1,290k, giving a current ratio slightly above 1.2x, which is adequate but not robust.
• The director’s loan account moved from negative £432 to positive £418, showing director financial support which is unsecured and interest free; this is a potential credit risk if not managed prudently.

3. Cash Flow Assessment:

• Cash at bank increased markedly from £140k in 2023 to £722k in 2024, indicating improved liquidity position and ability to meet short-term obligations.
• Debtors decreased from £896k to £568k, improving cash conversion but still high relative to turnover (turnover data not provided but presumably modest).
• No employees recorded, suggesting low operating overheads but also limited operational scale.
• Net current assets positive at £226k, indicating working capital buffer sufficient for near-term liabilities.
• Reliance on director’s advances introduces some risk if those funds are withdrawn or not replaced by operational cash flow.

4. Monitoring Points:

• Profit & loss account movement: track future profitability and retention of earnings to build equity further.
• Debtor days and collection efficiency: high debtors relative to turnover could signal collection risk.
• Director loan account: monitor changes in advances and repayments to ensure no adverse impact on liquidity.
• Cash balances: ensure liquidity remains sufficient to cover liabilities without reliance on director funding.
• Filing timeliness and compliance: currently up to date; maintain vigilance on regulatory filings.