Company Number: 12738791

Analysis Date: 2025-07-20 19:03 UTC

1. Risk Rating: MEDIUM
   The company shows recent improvements in net current assets and liquidity but ended the latest financial year with negative net assets, indicating solvency concerns. Micro entity status and absence of audit reduce transparency, warranting caution.

2. Key Concerns:

• Negative net assets of £118 at 31 July 2024 after prior positive net asset position, signaling potential erosion of equity and solvency pressures.
• Significant accruals and deferred income (£28,744) almost equal to total assets less current liabilities, which may mask underlying liquidity strain or revenue recognition issues.
• No employees reported despite operating in education sector, raising questions on operational capacity and sustainability of business model.

3. Positive Indicators:

• Strong net current assets (£28,407) exceeding current liabilities by a wide margin as of the last accounts, indicating short-term liquidity to meet obligations.
• Regular and timely filing of accounts and confirmation statements, with no overdue filings or penalties reported.
• Ownership and control concentrated with a single individual (Mr Neil Andrew Moggan), simplifying governance and decision-making.

4. Due Diligence Notes:

• Investigate nature and timing of accrued income and deferred income balances to assess revenue quality and cash flow implications.
• Review underlying causes of negative net assets and recent trends in profitability or losses, including any off-balance sheet liabilities.
• Confirm operational setup, including whether any subcontractors or outsourcing arrangements exist given zero employees reported.
• Verify director conduct and any related party transactions given sole control by founder and recent appointment of second director.
• Examine website presence and customer base to validate market position in the education services sector.