Company Number: 15126683

Analysis Date: 2025-07-20 11:43 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (September 2023) and has limited financial history. While it is currently active and compliant with filing requirements, it reports a small net asset base (£1,397) and net current liabilities (-£1,616), indicating marginal working capital. This presents moderate solvency and liquidity risk typical of start-up stage businesses in the education sector.

2. Key Concerns:

• Negative net current assets: Current liabilities exceed current assets by £1,616, suggesting potential short-term liquidity constraints.
• Limited financial track record: Only one partial financial year reported, insufficient to assess business sustainability or cash flow trends.
• Small equity base: Share capital is only £100, implying limited capital buffer to absorb operational or financial shocks.

3. Positive Indicators:

• Compliance: No overdue filings; accounts and confirmation statements submitted on time.
• Cash position: Cash at bank of £40,044 provides some immediate liquidity.
• Tangible assets: Plant and machinery valued at £3,083, indicating investment in operational infrastructure.
• Employment: Employs 10 staff, showing operational scale consistent with pre-primary education services.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank facilities to confirm ongoing liquidity and funding sources.
• Assess revenue generation and profitability trends once available beyond initial start-up period.
• Verify commercial contracts or agreements underpinning debtor balances (£31,784) for collectability risk.
• Confirm management experience and governance practices, particularly given significant influence held by few individuals.
• Monitor working capital management and creditor terms to mitigate short-term funding risks.