D&D EDUCATION LIMITED

Executive Summary

D&D Education Limited is currently financially distressed, evidenced by negative net assets and working capital deficits. The micro entity status and limited employee base constrain its capacity to service debt or absorb financial shocks. Given these weaknesses, credit facilities cannot be recommended at this time without significant improvement in liquidity and equity position.

D&D EDUCATION LIMITED - Analysis Report

Company Number: 13680641

Analysis Date: 2025-07-29 13:04 UTC

1. Credit Opinion: DECLINE
   D&D Education Limited shows a negative net asset position (£-2,196) as of the latest accounts dated 31 October 2024, indicating the company is insolvent on a balance sheet basis. Current liabilities (£4,771) exceed current assets (£2,575) by a significant margin, resulting in negative working capital and weak liquidity. The company is a micro entity with minimal financial buffers and only 1 employee, suggesting limited operational scale and resilience. Without evidence of improving cash flow or additional capital injections, the company lacks sufficient financial strength to service new credit facilities or meet debt obligations reliably.

2. Financial Strength:
   The balance sheet reveals negative net current assets and net assets, indicative of accumulated losses or creditor pressures. Shareholders’ funds are negative (£-2,196), reflecting erosion of equity. The company’s financial trajectory appears to be worsening as net liabilities increased compared to the prior year (£-1,631). Being a micro entity with limited fixed assets and low liquidity further constrains its ability to withstand financial stress or absorb shocks. No audit or detailed notes are available to assess contingent liabilities or off-balance sheet risks.

3. Cash Flow Assessment:
   Current assets are predominantly £2,575 with no detail on cash reserves or receivables, while current liabilities stand at £4,771, indicating a liquidity shortfall. Negative net current assets suggest working capital deficits which can impair day-to-day operations and ability to pay suppliers or creditors. The absence of cash flow statements or profit & loss data limits precise cash flow analysis, but the balance sheet position signals potential cash flow constraints and risk of payment delays or defaults.

4. Monitoring Points:

• Monitor for improvements in net current assets and equity position through capital injections or profit generation.
• Watch for timely filing of future accounts and returns to detect signs of operational continuity or distress.
• Track any director actions regarding additional funding or restructuring plans.
• Observe payment patterns to suppliers and creditors for signs of liquidity stress.
• Review any changes in control or management that may impact strategic direction.