INSIGHT ACADEMY LTD

Executive Summary

Insight Academy Ltd is a micro-sized educational support services company showing steady growth in net assets and liquidity, with adequate working capital to meet current obligations. The company’s small scale and limited fixed assets require cautious credit exposure and ongoing cash flow monitoring. Conditional credit approval is recommended, with emphasis on maintaining strong liquidity and controlling short-term liabilities.

INSIGHT ACADEMY LTD - Analysis Report

Company Number: 13219296

Analysis Date: 2025-07-19 12:22 UTC

1. Credit Opinion: APPROVE with conditions. Insight Academy Ltd demonstrates improving financial strength and adequate liquidity for its size and sector, supporting its ability to meet short-term obligations. However, as a very small, relatively new company with limited fixed assets and modest working capital (£11,615 net current assets), credit approval should be conditional on continued monitoring of cash flow and receivables, and on maintaining prudent credit limits. The company is active and compliant with filings, which is positive for credit discipline.

2. Financial Strength: The company’s balance sheet shows net assets of £11,615 as of 29 February 2024, up from £8,066 the previous year, indicating modest but steady growth in equity. There are no fixed assets recorded, suggesting reliance on current assets and operational cash flow rather than tangible asset backing. Share capital is nominal (£65 or £100—note slight discrepancy between fields), reflecting a small capital base. The increase in current liabilities from £3,716 in 2021 to £13,595 in 2024 warrants attention but remains covered by available current assets. Overall, financial strength is typical of a micro enterprise with controlled liabilities.

3. Cash Flow Assessment: Cash at bank increased from £16,505 to £25,110 over the last year, showing improved liquidity. Debtors remain minimal (£100), indicating quick collection or low credit sales, which reduces credit risk from accounts receivable. The net current assets of £11,615 suggest the company has sufficient working capital to cover short-term liabilities, supporting operational continuity. The growth in average employee numbers (from 2 to 4) implies expanding operations, which may increase short-term cash demands; therefore, cash flow monitoring is important.

4. Monitoring Points:

• Continued growth in net current assets and cash balances to ensure liquidity cushions improve.
• Tracking increases in current liabilities to avoid overextension of short-term credit.
• Watch for any significant changes in debtor levels or delayed payments that could impact cash flow.
• Monitor operational scaling relative to cash flow and profitability, given the company’s limited fixed asset base.
• Compliance with future filing deadlines to mitigate regulatory risk.
• Directors’ stewardship appears stable with no negative conduct records, but ongoing governance review is prudent.