EDUCATION & TRAINING CONSULTANCY LIMITED

Executive Summary

Education & Training Consultancy Limited is in its infancy with a weak financial base characterized by negative net assets and poor liquidity. The company is currently unable to meet its short-term liabilities and relies on director loans, presenting high credit risk. Without clear signs of operational profitability and improved cash flow, extending credit is not recommended at this stage.

EDUCATION & TRAINING CONSULTANCY LIMITED - Analysis Report

Company Number: 14655922

Analysis Date: 2025-07-29 19:59 UTC

1. Credit Opinion: DECLINE
   Education & Training Consultancy Limited shows significant financial weakness with net current liabilities of £26,554 and negative shareholders’ funds of £25,281 after its first financial year. The company is loss-making and heavily reliant on director loans to fund operations. The current liabilities exceed current assets by a large margin, indicating poor liquidity and an inability to meet short-term obligations without additional funding. The absence of audited accounts and limited trading history further increases risk. Given these factors, the company is not currently creditworthy for new borrowing or extended trade credit.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Fixed assets total only £1,274 (computers), while current assets (£17,991) are primarily trade debtors (£14,600) and a small cash balance (£1,966). Current liabilities of £44,545 include sizeable other creditors (£36,470) and tax/social security liabilities (£5,594), indicating potential cash flow pressure. The company’s negative net assets position implies accumulated losses and insufficient equity backing. The capital structure is weak, with the company dependent on director loans that are repayable on demand, which may not provide stable capital.

3. Cash Flow Assessment:
   The company’s liquidity is under stress, with cash at bank of just under £2,000 and significant short-term liabilities. Negative net current assets of £26,554 highlight working capital deficiencies. The high level of trade debtors may indicate slow collections or early-stage invoicing, but the company will struggle to cover immediate payables without further capital infusion. Without profitable trading or external financing, the company’s ability to service debt or meet operational costs is uncertain.

4. Monitoring Points:

• Improvement in working capital and reduction of creditor balances
• Generation of positive operating cash flow and profitability in future periods
• Regularization of tax and social security liabilities to avoid enforcement action
• Continued director support or external funding to maintain liquidity
• Timely filing of annual returns and accounts to maintain regulatory compliance