INTERNATIONAL BUSINESS ACADEMY CONSORTIUM LTD

Executive Summary

INTERNATIONAL BUSINESS ACADEMY CONSORTIUM LTD shows a robust financial position with strong liquidity, growing equity, and healthy working capital indicating sound financial health. The company benefits from prudent cash management and retained earnings but should consider strategic investments and revenue diversification to support future growth. Maintaining these positive trends will foster sustained financial wellness and operational stability.

INTERNATIONAL BUSINESS ACADEMY CONSORTIUM LTD - Analysis Report

Company Number: SC682720

Analysis Date: 2025-07-29 20:41 UTC

Financial Health Assessment Report for INTERNATIONAL BUSINESS ACADEMY CONSORTIUM LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid and improving financial position, with a strong increase in net assets and healthy working capital. However, being a relatively young private limited company with modest fixed assets and limited historical data, it earns a good but not top-tier grade. The financial "vital signs" indicate overall soundness but also areas where further growth and stability could be fostered.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Share Capital	£100	Minimal capital base, typical for small private companies.
Fixed Assets	£2,745	Small tangible asset base, indicating low investment in long-term physical resources.
Current Assets	£51,825	Healthy level of assets that can be quickly converted to cash.
Cash at Bank	£50,131	Very strong liquidity position; "healthy cash flow" status.
Debtors	£1,694	Moderate receivables; good collection process assumed.
Current Liabilities	£8,520	Manageable short-term obligations; low relative to current assets.
Net Current Assets (Working Capital)	£43,305	Robust working capital ensuring operational flexibility; a key "vital sign" of liquidity health.
Net Assets / Shareholders’ Funds	£45,528	Indicates positive retained earnings and equity growth; "healthy balance sheet".
Profit & Loss Reserve	£45,428	Accumulated profits retained in the company, reflecting profitability and reinvestment capability.
Average Number of Employees	2	Small workforce, typical for a micro/small enterprise.

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3. Diagnosis: Financial Condition and Underlying Health

• Liquidity and Cash Flow: The company exhibits excellent liquidity, with cash reserves far exceeding current liabilities. This "healthy cash flow" implies strong short-term financial stability and ability to meet obligations without stress.

• Solvency and Equity: The net assets have grown significantly from £13,472 in 2022 to £45,528 in 2023, indicating that the company is building equity and retaining earnings effectively. This is a positive "heart beat" signaling financial vitality.

• Asset Structure: Fixed assets are modest (£2,745), suggesting the business is not capital-intensive and likely relies on services or intellectual property. The increase in fixed assets from zero in 2022 to £2,745 in 2023 indicates initial investment in operational infrastructure.

• Growth Trajectory: Current assets and net assets have increased substantially over the last two years, reflecting business expansion or improved operational efficiency. The working capital increase from £13,472 to £43,305 is a strong positive symptom.

• Risk Factors: No indications of distress such as overdue filings, negative net assets, or significant liabilities. The company is active and compliant with filing deadlines. Directors and secretary are in place, with no disqualifications recorded.

• Operational Size: With just 2 employees, the company is small but stable, typical of a specialized educational services provider. The scale may limit rapid growth but supports focused control and low overhead.

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4. Recommendations for Financial Wellness Improvement

• Enhance Asset Base: Consider strategic investments in fixed assets aligned with business growth, such as technology or educational materials, to support service quality and scalability.

• Diversify Revenue Streams: Strengthen revenue recognition processes and explore new markets or service offerings under the educational support services sector to reduce dependency on limited income sources.

• Maintain Strong Cash Reserves: Continue the prudent cash management to safeguard liquidity, especially important in uncertain economic conditions.

• Monitor Debtor Days: Although debtors are low, maintaining efficient credit control will help sustain cash flow health.

• Plan for Growth: With solid financial footing, explore hiring or partnerships to scale operations without compromising financial stability.

• Regular Financial Reviews: Implement quarterly financial health checks, akin to routine medical check-ups, to detect early symptoms of potential stress or opportunity.

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