Company Number: 13991755

Analysis Date: 2025-07-20 17:35 UTC

1. Risk Rating: MEDIUM
   The company shows a significant improvement in net assets from a negative £89,950 in 2023 to a positive £441,357 in 2024, supported by a large cash position. However, it still reports net current liabilities and has a relatively high level of short-term creditors compared to current assets, indicating liquidity strain. The going concern note highlights reliance on parent company support.

2. Key Concerns:

• Liquidity Pressure: Current liabilities of £694,724 exceed current assets of £508,603, resulting in net current liabilities of £186,121, which may challenge short-term obligations without continued external support.
• Dependence on Parent Company: The financial statements state an undertaking from the parent company (RMA Education Group Limited) to support the business for at least 12 months, indicating potential underlying cash flow fragility.
• Investment Valuation Decline: The fixed asset investment value decreased from £980,990 to £627,478 due to a revaluation write-down of £353,512, suggesting impairment risks or reduced asset quality.

3. Positive Indicators:

• Strong Cash Reserves: Cash of £473,103 provides a buffer for operational needs and short-term liabilities.
• Significant Improvement in Net Assets: The turnaround from net liabilities to net assets within a year is a positive sign of financial restructuring or improved operational outcomes.
• No Overdue Filings: Accounts and confirmation statements are filed on time, indicating good compliance and governance practices.
• Ownership and Control Transparency: A single corporate entity (RMA Education Group Limited) holds majority control, simplifying governance and decision-making processes.

4. Due Diligence Notes:

• Investigate the nature and terms of the parent company’s financial support commitment beyond the 12-month horizon.
• Review the composition and recoverability of the fixed asset investments and reasons for the significant write-down.
• Assess the company's business model and revenue streams, as the company is classified as a holding company (SIC 64209) with limited operational detail provided.
• Examine short-term liabilities further, especially other loans (£679,380), to understand repayment schedules and creditor relationships.
• Confirm no director disqualifications or governance issues, noting the recent director changes and the presence of corporate directors.