CUBE EDUCATION LIMITED

Executive Summary

Cube Education Limited shows a strong micro-entity financial profile with improving equity and working capital, supporting its short-term debt servicing ability. The company is well-managed under a single director with no compliance issues, making it creditworthy for modest financing aligned with its size. Ongoing monitoring should focus on liquidity, related-party balances, and operational growth to sustain credit quality.

CUBE EDUCATION LIMITED - Analysis Report

Company Number: 13789565

Analysis Date: 2025-07-20 19:06 UTC

1. Credit Opinion: APPROVE
   Cube Education Limited demonstrates a positive financial trajectory with increasing net assets and net current assets over the past two years. The company maintains strong working capital and equity relative to its micro-entity size, suggesting an ability to service short-term liabilities and any modest credit facility. The director's continued involvement and 100% control indicates stable management oversight. No adverse filing or compliance issues are noted. Given the micro size, limited fixed assets, and director advances, credit exposure should be moderate and carefully sized to business scale.

2. Financial Strength:
   The company’s balance sheet shows steady growth from £6,702 net assets in 2022 to £14,548 in 2023, more than doubling equity in one year. Current assets have nearly doubled from £9,829 to £19,134, while current liabilities increased only moderately from £4,217 to £5,775, resulting in strong net current assets of £13,359. Fixed assets remain minimal (£1,879) consistent with a service-based education business. The company's capital and reserves fully support its liabilities, showing a sound financial position for a micro-entity.

3. Cash Flow Assessment:
   The net current assets indicate healthy liquidity, with current assets comfortably covering short-term liabilities by a factor of approximately 3.3x. The increase in current assets is a positive sign of improved cash or receivables, while current liabilities remain manageable. Director credit balances indicate some advances to the company from the director, which may reflect ongoing working capital support but also a potential related-party exposure. Overall, the company appears to have sufficient working capital to meet immediate obligations.

4. Monitoring Points:

• Continue monitoring working capital levels and any director loan balances for potential liquidity risks.
• Watch for consistency in revenue growth to support expanding current assets and equity.
• Monitor filing deadlines to ensure ongoing compliance and no regulatory penalties.
• Evaluate any need for external financing carefully given the micro size and limited fixed assets.
• Keep track of employee growth as indication of operational scaling and associated financial demands.