Company Number: 12546627

Analysis Date: 2025-07-19 13:04 UTC

1. Risk Rating: MEDIUM
   The company demonstrates a positive net asset position and improving net current assets, indicating solvency. However, the large increase in debtors and current liabilities in the latest year, as well as significant tax and social security creditors, introduce liquidity concerns that warrant attention.

2. Key Concerns:

• Liquidity pressure from increasing current liabilities: Current liabilities rose sharply from £114k to £311k, including a notable increase in taxation and social security creditors (£72k to £141k) and other creditors (£16k to £133k), which may constrain short-term cash flow.
• Substantial growth in trade and other debtors: Debtors increased over fourfold to £286k, heavily concentrated in trade debtors (£221k), potentially indicating collection risk or extended credit terms.
• Concentration of control and operational reliance: The sole director and 100% shareholder is also the driving instructor, implying high key person risk and potential operational fragility if the individual is unavailable.

3. Positive Indicators:

• Consistent increase in net assets and shareholders’ funds: Net assets grew from £107k (2024) to nearly £200k (2025), reflecting retained earnings growth and asset accumulation.
• Positive net current assets: Despite a past negative working capital position in 2022, the company has improved to £58k positive net current assets in 2025, suggesting improving short-term financial health.
• Asset base includes tangible fixed assets: The company holds £170k in net tangible fixed assets, representing some capital investment supporting operations.

4. Due Diligence Notes:

• Investigate the nature and collectability of trade debtors to assess potential credit risk and cash flow timing.
• Clarify reasons for the sharp increase in taxation and social security creditors and other creditors to understand if liabilities are being deferred or if payments are overdue.
• Review cash flow statements and projections to confirm liquidity sufficiency relative to rising liabilities.
• Assess operational dependence on the sole director and explore any succession or contingency planning.
• Confirm the company’s compliance with filing and regulatory requirements; current data shows all filings up to date and no overdue accounts or confirmation statements.