GRACE TUTORS LIMITED

Executive Summary

Grace Tutors Limited is a financially stable micro-entity with improving net assets and healthy liquidity. Its balance sheet strength and positive working capital support its ability to meet short-term obligations reliably. The company’s small scale and compliance with statutory filings further reduce credit risk, making it a suitable candidate for credit approval with routine monitoring.

GRACE TUTORS LIMITED - Analysis Report

Company Number: 13584029

Analysis Date: 2025-07-29 13:03 UTC

1. Credit Opinion: APPROVE - Grace Tutors Limited demonstrates sound financial stability for a micro-entity with a positive net asset position and increasing shareholder funds over the last two years. The company is active, compliant with filing deadlines, and has no indications of financial distress or management concerns. Its modest liabilities relative to assets and positive working capital support its ability to service short-term obligations, making it a low-risk borrower for typical credit facilities.

2. Financial Strength: The balance sheet shows growth in net assets from £4,650 in 2022 to £6,058 in 2023, reflecting retained earnings or capital injections. Fixed assets are minimal but have increased slightly, indicating small investments in long-term resources. Current assets have increased by £2,727, while current liabilities have risen by £1,645, resulting in improved net current assets (working capital) of £5,733. The company’s equity fully covers its liabilities, indicating a strong solvency position.

3. Cash Flow Assessment: The net current assets position of £5,733 suggests adequate liquidity to meet short-term liabilities of £3,445. Current assets primarily consist of cash and receivables typical for an educational support business, implying reasonable cash flow to support ongoing operations. The increase in current liabilities is moderate and manageable given the growth in current assets. The company employs only 2 staff, which helps control fixed costs and preserves cash flow flexibility.

4. Monitoring Points:

• Monitor growth in current liabilities relative to current assets to ensure working capital remains positive.
• Track any changes in payment behavior or delays in creditor settlements.
• Review turnover and profitability trends as these details become available to ensure continued cash generation.
• Monitor any changes in director or ownership structure that could impact governance or financial stewardship.
• Keep an eye on sector risks impacting educational support services, especially regulatory or funding changes.