JULIA GAUGHAN EDUCATION LTD

Executive Summary

Julia Gaughan Education Ltd is a newly formed micro entity with a solid initial balance sheet and positive working capital, supported by director’s funding. While early-stage and unaudited, the company currently demonstrates adequate liquidity and low financial risk. Credit approval is recommended with exposure limits and ongoing monitoring until a longer trading history confirms stability.

JULIA GAUGHAN EDUCATION LTD - Analysis Report

Company Number: 15111674

Analysis Date: 2025-07-19 11:53 UTC

1. Credit Opinion: APPROVE with caution. Julia Gaughan Education Ltd is a newly incorporated micro private limited company with a positive net current asset position and no overdue filings. The company shows a modest working capital buffer and no audit requirements due to its size. However, as it is early in its trading history and financials are unaudited, credit exposure should be limited and monitored closely until a longer performance track record is established.

2. Financial Strength: The company reports minimal fixed assets (£75) and current assets of £8,940 against current liabilities of £4,523, yielding net current assets of £4,417 and total net assets/shareholders' funds of £4,492. The balance sheet is very modest but healthy for a start-up, with no external debt recorded. The director has provided an unsecured, interest-free loan which currently results in a negative director’s balance outstanding to the company (£2,092), improving liquidity.

3. Cash Flow Assessment: Current assets mainly consist of cash or receivables sufficient to cover short-term liabilities, indicating reasonable liquidity. Net working capital is positive, and no overdrafts or borrowings are noted. The company employs only one person (the director), keeping overheads low. While cash flow appears stable, the company’s infancy means cash flow volatility risk exists until operational revenues stabilize.

4. Monitoring Points:

   • Track profitability and cash generation in subsequent periods to ensure sustainable debt servicing capacity.
   • Monitor director’s loan account movements and any related party transactions.
   • Watch for any increases in current liabilities or changes in working capital dynamics.
   • Confirm timely filing of accounts and confirmation statements to avoid compliance risks.
   • Review management’s ability to scale operations and maintain positive cash flow.