GL LEARNING LTD

Executive Summary

GL Learning Ltd is a small, recently established private company operating in education and childcare services. While it maintains positive net current assets and compliance with filing obligations, its low net equity and growing director loan balance highlight moderate solvency and liquidity risks. Further scrutiny of related party funding and debtor quality is warranted to fully assess financial stability.

GL LEARNING LTD - Analysis Report

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.