Company Number: 12788094

Analysis Date: 2025-07-20 17:27 UTC

1. Credit Opinion: APPROVE
   Consistent Education Limited demonstrates a stable financial position with consistent net current assets and positive net assets over the last four years. The company shows no overdue filings and maintains compliance with statutory requirements. The micro-entity scale limits complexity and risk, and the directors appear committed with no adverse records. Given the company’s solid balance sheet and absence of significant liabilities or audit qualifications, it is creditworthy for typical SME lending or trade credit facilities.

2. Financial Strength:

• Net assets have increased steadily from £8,028 in 2020 to £46,504 in 2024, reflecting retained earnings and equity growth.
• Net current assets remain healthy around £58k, with current assets substantially exceeding current liabilities, indicating good short-term financial stability.
• Fixed assets are minimal but sufficient for the company’s educational support services, consistent with a service-focused business model.
• Accruals and deferred income decreased from £19,582 to £11,967, suggesting improved revenue recognition or cash collection.
• Share capital is nominal (£100), typical for micro-entities, with shareholders’ funds growing due to profitability and reserves.

3. Cash Flow Assessment:

• Current assets of approximately £90k mainly comprise cash or equivalents and receivables, supporting liquidity.
• Current liabilities at £32k are manageable and well-covered by liquid assets.
• Net current assets and working capital are strong, indicating the company can meet short-term obligations without refinancing.
• The company employs only one person, keeping operating costs low and enhancing cash flow predictability.
• No audit exemption suggests limited complexity and risk of hidden financial issues.

4. Monitoring Points:

• Maintain close monitoring of accruals and deferred income to ensure revenue recognition aligns with cash flows.
• Watch for any significant increase in current liabilities or reduction in net current assets that could strain liquidity.
• Track turnover and profitability trends in future filings for growing or declining business signals.
• Observe any changes in director appointments or control structures that might impact governance or financial management.
• Keep an eye on external economic factors affecting the education sector that could influence revenue stability.