C3D LEARNING UK LTD

Executive Summary

C3D Learning UK Ltd is experiencing severe financial distress, with a sharp decline in net assets and significant negative working capital. Its liquidity position is critical, indicating a high risk of default on obligations. Given these factors, credit approval is not recommended without substantial evidence of turnaround or capital support.

C3D LEARNING UK LTD - Analysis Report

Company Number: 13102666

Analysis Date: 2025-07-20 14:28 UTC

1. Credit Opinion: DECLINE. C3D Learning UK Ltd exhibits significant financial distress as evidenced by its consistently negative net assets and worsening working capital position in the latest financial year. The company’s ability to meet short-term obligations is severely impaired with current liabilities far exceeding current assets by £271,833 at year-end 2023. This raises substantial concerns about its capacity to service debt or honor commercial agreements without additional capital injection or restructuring.

2. Financial Strength: The balance sheet shows a rapid deterioration in financial strength over the past two years. Net assets declined from a positive £141,340 at the end of 2022 to a negative £272,433 in 2023, indicating accumulated losses or increased liabilities. The micro-entity size classification implies limited asset base and scale. The capital structure is weak, with only £1 in share capital and no apparent reserves to buffer operational or financial shocks.

3. Cash Flow Assessment: Liquidity is critically constrained. Current liabilities of £275,058 dwarf current assets of £3,225, resulting in a heavily negative net current asset position of -£271,833. This suggests high dependency on external funding or creditor support to maintain operations. The company’s working capital is negative and deteriorating, reflecting poor cash flow management or business performance issues. Without immediate remedial action, ongoing liquidity risk is high.

4. Monitoring Points:

• Track monthly cash flow forecasts and working capital trends for signs of improvement or further deterioration.
• Monitor any capital injections or restructuring initiatives aimed at improving equity and liquidity.
• Watch director’s actions and any creditor negotiations for signs of distress or insolvency proceedings.
• Review subsequent filings and accounts for evidence of turnaround or worsening financial health.
• Assess operational performance metrics as available, given the company’s sector in educational support and IT consultancy.