Company Number: 13140764

Analysis Date: 2025-07-20 14:07 UTC

1. Risk Rating: MEDIUM
   The company shows modest profitability with increasing turnover and net assets, indicating some operational progress. However, the presence of long-term creditors and relatively low current assets versus liabilities warrants caution regarding liquidity and solvency risk.

2. Key Concerns:

• Long-term Creditors: The company has non-current liabilities (£13,129 in 2025) which could strain solvency if cash flows weaken.
• Low Current Assets: Current assets (£1,010) are minimal compared to prior years and may challenge short-term liquidity despite positive net current assets reported.
• No Employees and Limited Scale: The company reports zero employees, suggesting reliance on contractors or owner operations, which may impact scalability and operational stability.

3. Positive Indicators:

• Growing Turnover and Profit: Turnover increased from £76,981 (2024) to £127,981 (2025), with a profit of £3,272 in 2025 compared to £22,260 in 2024, indicating business growth and ability to generate earnings.
• Increasing Net Assets and Shareholders’ Funds: Net assets increased significantly to £30,811 in 2025 from £6,688 in 2024, showing an improving financial position.
• No Overdue Filings: Accounts and confirmation statements are up to date, suggesting good regulatory compliance.

4. Due Diligence Notes:

• Clarify Nature of Long-Term Liabilities: Investigate the terms, interest, and repayment schedule of the £13,129 creditors due after one year to assess solvency risk.
• Cash Flow Analysis: Obtain cash flow statements or management accounts to verify liquidity given very low current assets and to understand cash generation capability.
• Operational Model and Employee Dependence: Understand how the business operates without employees—whether through subcontractors, digital platforms, or owner involvement—and implications for growth and continuity.
• Review Revenue Recognition and Client Concentration: Confirm that turnover growth is sustainable and not reliant on a few clients or one-off contracts.
• Director Background and Related Party Transactions: Given the sole director is also the Chief National Tuition Director, assess any related party transactions or potential conflicts of interest.