CAPSTONE TRAINING ACADEMY LTD

Executive Summary

Capstone Training Academy Ltd is a young, small private company showing early signs of financial improvement with net assets now positive. However, liquidity remains tight and working capital is marginally negative, supported by director loans. Credit may be extended conditionally, with close attention to cash flow management and ongoing financial performance.

CAPSTONE TRAINING ACADEMY LTD - Analysis Report

Company Number: 14188578

Analysis Date: 2025-07-20 17:35 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Capstone Training Academy Ltd shows improvement in its financial position over the past year, moving from negative net assets of £1,754 in 2023 to positive net assets of £805 in 2024. The company is relatively new (incorporated 2022) and active in educational support services, which can be resilient sectors. However, current liabilities slightly exceed current assets, resulting in a marginally negative working capital (£-30), and cash balances remain very low (£1,038). The company also has loans from directors (£750) indicating reliance on related party funding. Given these factors, credit could be extended with conditions such as close monitoring of liquidity, further capital injection, or strengthened cash flow management.

2. Financial Strength:
   The balance sheet has strengthened notably with net assets turning positive, driven primarily by a reduction in current liabilities from £3,190 to £1,068, and a modest increase in cash. Fixed assets are minimal (£835) and primarily consist of fixtures and fittings. The company has no long-term debt except director loans. Shareholders’ funds have improved from a deficit, reflecting some retained earnings or capital contributions. However, the small scale of operations (no employees reported) and limited asset base suggest thin financial buffers.

3. Cash Flow Assessment:
   Liquidity remains tight with cash just above current liabilities at year-end, resulting in near-zero net current assets. The company’s ability to meet short-term obligations is marginal and could be strained if receivables or cash inflows are delayed. The absence of employees may reduce cash burn, but the sustainability of operations depends on ongoing revenue generation and/or continued director support. Working capital management and timely collection of receivables should be priorities.

4. Monitoring Points:

• Monitor cash balances and working capital trends monthly to ensure ability to meet short-term liabilities.
• Watch for any increase in director loans or other related party funding as a sign of funding pressure.
• Review turnover and profit progression when available to assess business growth and operational sustainability.
• Track timely filing of accounts and confirmation statements to avoid compliance risks.
• Evaluate any changes in business model or expansion plans that may impact financial stability.