HARUN SCHOOL OF MOTORING LIMITED

Executive Summary

Harun School of Motoring Limited is a micro-entity operating within the highly fragmented driving school sector, characterized by small, owner-operated businesses. Its financials reflect typical industry challenges including tight liquidity and modest asset bases, with recent declines in equity signaling some operational pressures. While vulnerable to competitive and cost pressures, its small scale provides operational flexibility, positioning it as a niche player adapting within evolving market conditions.

HARUN SCHOOL OF MOTORING LIMITED - Analysis Report

Company Number: 12767722

Analysis Date: 2025-07-29 20:19 UTC

1. Industry Classification
   Harun School of Motoring Limited operates within the "Driving school activities" sector, classified under SIC code 85530. This sector primarily involves providing practical driving lessons, theory test preparation, and related learner driver services. Key characteristics include a high dependence on local demand, regulatory compliance with the Driver and Vehicle Standards Agency (DVSA), and relatively low capital intensity. Most players are small to micro enterprises, often owner-operated, with a strong focus on reputation and customer referrals.

2. Relative Performance
   Harun School of Motoring Limited is a micro-entity, consistent with typical industry norms where firms are often small and owner-led. Its financials show fixed assets around £14-16k and current assets decreasing from £19,430 in 2023 to £11,611 in 2024. Current liabilities remain substantial (£25k in 2024), resulting in persistent net current liabilities of approximately £13k. Shareholders’ funds have declined from £3,532 in 2023 to £1,029 in 2024, indicating a reduction in net equity. This financial profile is typical for small driving schools, which often operate with tight cash flows and modest asset bases. However, the working capital deficit suggests some liquidity pressures compared to more established schools that maintain positive net current assets.

3. Sector Trends Impact
   The driving school sector faces several market dynamics affecting performance. Post-pandemic recovery has increased demand for driving lessons as learner numbers rebound. However, rising fuel prices, inflationary pressures, and increased competition from online theory learning platforms impose cost and margin challenges. Additionally, regulatory changes such as stricter instructor qualification requirements and digital booking platforms shape competitive advantage. The sector is also influenced by demographic trends, with younger populations and urbanisation driving demand. Harun School of Motoring’s small scale and localised operations make it vulnerable to these cost pressures but potentially agile in adapting to digital marketing and customer service innovations.

4. Competitive Positioning
   Harun School of Motoring Limited is a niche, micro-sized player in a fragmented industry dominated by sole traders and small businesses. Strengths include low fixed asset investment, enabling operational flexibility, and direct control by the director who is also a driving instructor, ensuring alignment of service delivery and management. Weaknesses lie in the negative working capital position and declining equity, which may limit investment in marketing or fleet expansion compared to competitors with stronger balance sheets. The company’s small scale constrains economies of scale and bargaining power, which larger local or national driving schools leverage. Nonetheless, its micro-entity status aligns with typical small driving schools, and its survival since 2020 indicates resilience in a competitive environment.