Company Number: 12735078

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

1. Risk Rating: HIGH
   The company exhibits a significant solvency risk due to escalating long-term liabilities far exceeding its total assets and shareholders’ funds, resulting in a large negative net asset position.

2. Key Concerns:

   • Severe Negative Net Assets: Net assets have deteriorated from -£200k in 2023 to -£348k in 2024, indicating accumulated losses and erosion of equity.
   • Substantial Long-Term Liabilities: Creditors due after more than one year increased sharply from approx. £203k to £351k, vastly outweighing total assets (~£2.7k), suggesting high financial leverage or possible debt restructuring.
   • Minimal Liquidity Cushion: Cash balances are very low (around £2.6k), and current liabilities (~£1.2k) are close to or exceed current assets, indicating tight short-term liquidity and potential cash flow constraints.

3. Positive Indicators:

   • Timely Filing and Compliance: The company has up-to-date accounts and confirmation statement filings with no overdue returns, which reflects good regulatory compliance.
   • Stable Asset Base: Tangible fixed assets and investments remain relatively stable year-on-year, showing no asset disposals or impairments.
   • Clear Ownership and Governance: Current directors and persons with significant control are clearly identified with no noted disqualifications or governance issues.

4. Due Diligence Notes:

   • Nature and Terms of Long-Term Creditors: Investigate the composition, maturity, and covenants of the £351k long-term creditors to understand the risk profile and repayment obligations.
   • Profit and Loss Account Details: Review the income statement (not filed publicly due to abridged accounts) to assess operating income, expenditure, and reasons for losses or negative reserves buildup.
   • Cash Flow Analysis: Examine cash flow statements and bank facilities to evaluate liquidity management and the company’s ability to meet near-term obligations.
   • Business Model and Revenue Sources: Confirm the sustainability of the educational support services business given the low employee count (1 employee) and minimal turnover data available.
   • Related Party Transactions: Given prior changes in directors and significant control shifts, assess any related party loans or transactions that may influence financial position.

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