EQUIS IN EDUCATION LTD

Executive Summary

Equis in Education Ltd is a very new micro-entity with minimal equity and tight liquidity, reflecting typical start-up characteristics. While the sole director’s control and small scale limit credit risk, the company’s limited financial track record and working capital constraints necessitate prudent credit limits and ongoing close monitoring. Approval should be conditional on receipt of updated financial information and evidence of improving cash flow.

EQUIS IN EDUCATION LTD - Analysis Report

Company Number: 14670309

Analysis Date: 2025-07-29 19:12 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Equis in Education Ltd is a newly incorporated micro-entity with limited financial history and minimal net assets (£165). The company shows a small working capital deficit (£385) before adjusting for accruals and prepayments, indicating tight liquidity. The sole director and 100% shareholder, Mr. Alan Edward Gardner, has committed to the business, but the company’s infancy and low equity base warrant cautious credit exposure. Recommend small initial credit limits with regular monitoring and request updated management accounts or cash flow forecasts before increasing exposure.

2. Financial Strength: The balance sheet reveals very limited net assets (£165) and total net current assets of £1,115 after adjusting for prepayments and accrued income. Fixed assets are negligible or not reported, typical of a micro-entity in service industries. Current liabilities slightly exceed current assets if prepayments/accruals are excluded, indicating a marginal liquidity crunch. The equity base is minimal, reflecting start-up status. No external debt is reported, so financial leverage risk is low at present.

3. Cash Flow Assessment: The company’s current assets of £8,634 versus current liabilities of £9,019 suggest working capital is tight, with a net current asset position of £1,115 once prepayments (£1,500) and accruals/deferred income (£950) are considered. The small staff size (2 including director) likely keeps operating costs low, but cash inflows to cover liabilities are not yet clearly demonstrated. Absence of profit and loss details limits ability to assess operational cash generation. Cash flow risk exists due to minimal liquidity buffer.

4. Monitoring Points:

• Quarterly or biannual management accounts to track revenue growth and profitability.
• Cash flow forecasts to anticipate liquidity needs and timing of liabilities.
• Changes in working capital, especially current assets vs. liabilities trends.
• Director’s continued financial commitment or injection of equity.
• Any overdue filings or compliance issues that could signal operational distress.
• Client concentration or dependency risks in educational support services.
• Impact of external economic conditions on demand for company’s services.