KEEPERS GATE FOREST SCHOOL LTD

Executive Summary

KEEPERS GATE FOREST SCHOOL LTD displays moderate financial stability with improving equity but is challenged by significant long-term liabilities and short-term liquidity constraints. The company maintains good compliance and stable management; however, its small scale and negative net working capital warrant careful monitoring. Further cash flow analysis and creditor terms review are recommended to fully assess solvency risks.

KEEPERS GATE FOREST SCHOOL LTD - Analysis Report

Company Number: 13506666

Analysis Date: 2025-07-20 12:13 UTC

1. Risk Rating: MEDIUM
   The company shows some positive net assets and modest shareholder funds growth but has significant long-term liabilities compared to current assets, which raises concerns about solvency and liquidity. The micro-entity status and limited employee base suggest a small scale operation, and the absence of overdue filings or liquidation status is reassuring, but financial structure warrants caution.

2. Key Concerns:

• High Long-Term Liabilities: The company reports creditors due after more than one year of £92,842 (2024), which is substantial relative to net assets (£67,355) and may pressure cash flows over time.
• Net Current Liabilities: The balance sheet shows negative net current assets (-£7,989 in 2024), meaning current liabilities exceed current assets, which can indicate short-term liquidity challenges.
• Modest Scale and Growth: As a micro-entity with only 5 employees and relatively small asset base, the business may have limited operational flexibility and resilience to financial shocks.

3. Positive Indicators:

• Increasing Shareholders’ Funds: Equity improved from £31,414 in 2023 to £67,355 in 2024, indicating retained earnings or capital injection supporting solvency.
• No Overdue Filings or Compliance Issues: The company has filed accounts and confirmation statements on time, evidencing good regulatory compliance and governance.
• Stable Leadership: Both directors, who are also the significant controllers, have been in position since incorporation, implying stable management and ownership.

4. Due Diligence Notes:

• Review the composition and terms of the long-term creditors to assess repayment schedules and any covenants or refinancing risks.
• Analyze cash flow statements (not currently available) to evaluate operational liquidity and working capital management.
• Investigate the nature of fixed assets (£168,186) for their liquidity and capacity to support business operations or collateral value.
• Confirm the company’s business model sustainability given the small employee base and sector (pre-primary education).
• Verify any off-balance sheet obligations or contingent liabilities that could impact financial health.