GLOBE COLLEGE LIMITED

Executive Summary

Globe College Limited is a micro-entity with stable but modest financial resources and no external debt, suitable for limited credit exposure. While the company currently maintains positive net assets and working capital, the small scale and limited financial history necessitate conditional credit approval with ongoing monitoring of cash flows and operational performance. Cautious lending aligned with the company’s size and regular financial updates is advised.

GLOBE COLLEGE LIMITED - Analysis Report

Company Number: 13822151

Analysis Date: 2025-07-20 16:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Globe College Limited is a micro-entity with limited financial history, having been incorporated in late 2021. The company shows positive net assets and working capital, indicating a stable short-term liquidity position. However, the absolute asset and equity values (£16,031 net assets as of 2023) are modest, reflecting a very small scale operation. The company’s ability to service significant borrowings is uncertain given the limited financial data and lack of profit or cash flow details. Credit approval is recommended with conditions: any lending should be modest relative to the company’s equity base and contingent on updated management accounts and cash flow forecasts to confirm ongoing operational viability.

2. Financial Strength:
   The balance sheet reflects a sound net asset position for a micro-entity, with net current assets of £16,031 as at 31 December 2023, up from £10,268 in 2021. There are no fixed assets or long-term liabilities reported, minimizing financial risk. Shareholders’ funds equal net assets, suggesting no external debt. The company’s financial position appears stable but limited in scale, with no evidence of leverage or accumulated losses.

3. Cash Flow Assessment:
   Current assets are primarily cash or receivables (exact composition not detailed), and current liabilities are nil, resulting in positive net working capital. The absence of current liabilities reduces liquidity pressure. However, the small absolute cash and asset amounts suggest limited operational cash flow capacity. The company employs 1 person on average, indicating a lean cost base. Without profit and cash flow statements, it is difficult to assess cash generation, so liquidity monitoring is essential.

4. Monitoring Points:

• Review forthcoming management accounts and cash flow statements to ensure continued liquidity and profitability.
• Monitor any build-up of liabilities or changes in asset composition that could impact working capital.
• Watch for changes in scale of operations or employee count that may affect cash needs.
• Track timely filing of annual returns and accounts to mitigate compliance risk.
• Assess director’s ongoing financial stewardship given sole control by Mr. Tinashe Masunda.