Company Number: 12476164

Analysis Date: 2025-07-20 11:46 UTC

1. Risk Rating: HIGH
   The company shows significant solvency and liquidity concerns due to large current liabilities exceeding current assets by a substantial margin and heavy long-term creditor obligations. The relatively low net asset position despite sizable fixed assets indicates a fragile equity base.

2. Key Concerns:

• Liquidity Deficit: Net current liabilities of £218,132 against current assets of just £6,643 suggest the company may struggle to meet short-term obligations as they fall due.
• High Long-Term Debt: Creditors due after more than one year total £642,106, which heavily leverages the company’s asset base and increases default risk.
• Related Party Debt: £199,182 is owed to a related company controlled by the director, raising potential conflict of interest and questioning the arm’s length nature of financing arrangements.

3. Positive Indicators:

• Growing Net Assets: Net assets increased from £1,609 in 2022 to £20,458 in 2023, indicating some improvement in equity, albeit still at a low absolute level.
• No Overdue Filings: The company is current with accounts and confirmation statement filings, reflecting compliance with regulatory reporting requirements.
• Fixed Asset Base: Ownership of fixed assets worth £885,054 provides collateral value, important for creditor negotiations or refinancing options.

4. Due Diligence Notes:

• Examine the nature and terms of the related party loan from Value Education Ltd, including repayment schedules, interest rates, and any security.
• Review cash flow statements and management forecasts to assess ability to service current and long-term liabilities.
• Investigate reasons for persistent negative working capital despite asset growth and assess operational cash generation capacity.
• Confirm director background and any associated party transactions for governance and conflict of interest risks.