Company Number: SC677105

Analysis Date: 2025-07-29 13:22 UTC

1. Risk Rating: MEDIUM
   Career-Ed Ltd shows positive net assets and working capital growth but has a material director loan balance. The company is small, still relatively new (incorporated 2020), and unaudited accounts limit transparency. Overall solvency appears adequate, but liquidity and governance risks warrant attention.

2. Key Concerns:

• Director loan balance of £23,988 as of 2023, which is interest-free and repayable on demand, poses potential risk if repayment is delayed or defaulted.
• Rapid increase in debtors from £2,366 (2022) to £41,272 (2023) may indicate customer concentration risk or collection issues impacting cash flow.
• Small scale and unaudited abridged accounts provide limited insight into profitability and operational resilience.

3. Positive Indicators:

• Strong improvement in net current assets from £52 (2022) to £30,973 (2023) indicates improved short-term financial strength.
• Positive net assets and shareholder funds growth from £52 to £30,973 show accumulation of retained earnings or capital injection.
• No overdue filings or regulatory compliance issues; last accounts and confirmation statement filed timely.

4. Due Diligence Notes:

• Verify the nature and collectability of the increased debtor balances and the aging profile to assess liquidity risk.
• Investigate the terms and potential repayment plan for the director loan to understand contingent liabilities and cash flow impact.
• Obtain management accounts or further financial disclosures to evaluate profitability, cash flow trends, and operational sustainability.
• Confirm there are no contingent liabilities or ongoing disputes that could affect financial stability.