FORTIF INCLUSIVE EDUCATION LIMITED

Executive Summary

Fortif Inclusive Education Limited faces moderate financial risk primarily due to a sharp decline in liquidity and net assets over the last year, raising concerns about short-term solvency despite continued regulatory compliance and active management. Further due diligence on cash flow, director loans, and business operations is recommended to clarify sustainability and risk exposure.

FORTIF INCLUSIVE EDUCATION LIMITED - Analysis Report

Company Number: 13800493

Analysis Date: 2025-07-29 15:53 UTC

1. Risk Rating: MEDIUM
   The company maintains positive net assets but has shown a significant deterioration in liquidity over the past year, resulting in negative net current assets as of the latest accounts. This raises moderate concern regarding short-term solvency despite a positive equity position.

2. Key Concerns:

• Liquidity Deterioration: Current liabilities (£2,212) slightly exceed current assets (£2,088) as of 31 December 2023, resulting in a net current liability of £124 compared to a strong positive net current asset position of £8,233 in the previous year. This trend signals potential cash flow or working capital strain.
• Declining Net Assets: Net assets fell sharply from £8,617 at the end of 2022 to only £153 at the end of 2023, indicating erosion of the company’s financial buffer which could impact solvency if continued.
• Director Loan Exposure: The director has an unsecured, interest-free loan to the company, reducing the company’s cash resources and presenting potential risk if repayment terms are not honored or if this loan is relied upon for liquidity support.

3. Positive Indicators:

• Compliance: The company is up to date with all filing requirements and is not overdue on accounts or confirmation statements, indicating good regulatory compliance.
• Ownership and Control: The sole director and 75-100% shareholder is actively involved, which may support swift decision making and operational continuity.
• Micro Entity Status: Enables simplified reporting and potentially lower administrative burden, consistent with a small-scale operation keeping governance manageable.

4. Due Diligence Notes:

• Review Cash Flow Statements: Obtain detailed cash flow data to understand the causes of liquidity decline and whether it is a temporary timing issue or structural problem.
• Assess Director Loan Terms: Clarify the nature, terms, and security of director advances to evaluate risk exposure and dependency on director financing.
• Investigate Revenue and Profit Trends: Limited financial detail is available; further inquiry into turnover, profitability, and ongoing business operations is needed to assess sustainability.
• Confirm Operational Model: Given limited fixed assets and small employee count, understanding the business model and revenue streams is important to evaluate operational stability.