Company Number: 13884692

Analysis Date: 2025-07-29 20:35 UTC

1. Risk Rating: LOW
   The company demonstrates a stable financial position with positive net assets and no overdue filings. Despite being a micro entity, it maintains positive net current assets and shareholders’ funds, indicating low immediate solvency or liquidity risk.

2. Key Concerns:

• Declining net assets: Net assets decreased from £4,022 in 2023 to £3,626 in 2024, a reduction of approximately 10%, which warrants monitoring for potential erosion of equity.
• Current liabilities rise: Current liabilities increased significantly from £4,223 to £34,711 in the latest year, which, although current assets also increased, could indicate increased short-term obligations that need to be managed carefully.
• Limited scale and short operating history: Incorporated in 2022, with only micro-entity accounts available, the company has limited financial history and scale, which may limit resilience to adverse conditions.

3. Positive Indicators:

• Positive net current assets (£2,729) and net assets (£3,626) demonstrate current solvency and a buffer against liabilities.
• No overdue statutory filings or compliance issues, reflecting good governance and regulatory adherence.
• Ownership and control concentrated with a single director and significant shareholder (Mrs Sonali Tyagi), potentially enabling streamlined decision-making and accountability.
• Growth in current assets from £8,595 to £37,440, indicating improved liquidity positions year-on-year.

4. Due Diligence Notes:

• Investigate the nature and cause of the substantial increase in current liabilities between 2023 and 2024 to assess sustainability and repayment plans.
• Review cash flow statements (not provided) to confirm the company’s ability to meet short-term obligations and understand working capital management.
• Obtain further information on revenue growth and profitability as the profit and loss account was not filed, limiting assessment of operational stability.
• Consider the impact of the company’s very limited size and short trading history on operational resilience and market positioning in primary education.
• Confirm whether the company is reliant on related party transactions or loans from the shareholder/director that may influence financial stability.