FIVE STAR LEARNING LIMITED

Executive Summary

FIVE STAR LEARNING LIMITED is a recently established micro-entity operating in child day-care and education, currently exhibiting a high risk profile due to negative net assets and net current liabilities. While regulatory compliance is up to date and governance is clear, the company's financial position indicates liquidity and solvency concerns that require further investigation into its operational viability and funding strategy.

FIVE STAR LEARNING LIMITED - Analysis Report

Company Number: 14786115

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: HIGH
   The company shows a negative net asset position (£-6,049) with current liabilities exceeding current assets, indicating immediate solvency and liquidity risks. As a newly incorporated micro-entity with limited operating history and negative working capital, it faces financial instability.

2. Key Concerns:

• Negative net current assets (£-6,049), reflecting potential inability to meet short-term obligations.
• Net liabilities position, implying the company’s liabilities exceed its assets at the latest accounts date.
• Limited financial track record (less than one year of trading) and micro-entity status restrict transparency and depth of financial information, increasing uncertainty on operational sustainability.

3. Positive Indicators:

• The company is active with no overdue filings, demonstrating compliance with regulatory requirements to date.
• The sole director, Abdinasir Hassan Ahmed, holds full control and is actively managing the company, suggesting clear governance lines.
• The company operates in sectors with steady demand (child day-care and education), potentially supporting future revenue growth if operationally managed well.

4. Due Diligence Notes:

• Investigate the nature and short-term maturity of current liabilities to assess immediate cash flow pressures.
• Obtain management accounts or cash flow forecasts to evaluate liquidity beyond the year-end snapshot.
• Review business plan and funding sources to understand how the negative net asset position will be remedied and operations sustained.
• Confirm the physical location and assets tied to the registered addresses to verify operational presence.
• Assess the background and experience of the director given sole control and the company’s early stage.