Company Number: 13815280

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

1. Risk Rating: MEDIUM
   The company's solvency appears marginal with net assets of only £408 as of 31 December 2023, down from £601 the previous year. While current assets exceed current liabilities, the significant increase in long-term director loans (£24,535) raises concerns about financial dependence on insider funding. The company is small and recently incorporated, limiting historical financial depth, which adds to uncertainty.

2. Key Concerns:

• Low Net Asset Base: Net assets have declined and remain very low, indicating limited equity cushion to absorb losses.
• Director Loan Dependency: Long-term liabilities primarily consist of a director loan account which increased markedly, suggesting reliance on related party funding to meet obligations.
• Limited Cash Reserves: Cash at bank is minimal (£1,591), which could constrain operational liquidity and flexibility, especially given trade debtors are a large portion of current assets and may carry collection risk.

3. Positive Indicators:

• Positive Net Current Assets: The company’s current assets exceed current liabilities by £24,943, reflecting adequate short-term liquidity.
• No Overdue Filings: Annual accounts and confirmation statements are up to date and filed on time, indicating compliance with statutory requirements.
• Single Director with Relevant Occupation: The sole director is a teacher, aligned with the educational support services activity, suggesting relevant operational knowledge.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan account, including repayment schedule and interest, to assess financial sustainability.
• Review aging and collectability of trade debtors to evaluate realisable current assets and potential liquidity risks.
• Examine turnover and profit trends (not disclosed here) to understand operational performance and cash generation.
• Confirm absence of any regulatory, legal, or governance issues given limited disclosures.
• Assess dependency on a single individual for management and control, including any succession or continuity plans.