LEARN COMPUTER SCIENCE LTD

Executive Summary

Learn Computer Science Ltd is currently facing high financial risk due to negative net assets and a pronounced liquidity gap, signaling potential solvency challenges. While the company remains compliant with filing requirements and maintains stable management, the rapid financial deterioration warrants close scrutiny. Further investigation into operational performance, debt structure, and management strategy is essential to assess viability and investment risk.

LEARN COMPUTER SCIENCE LTD - Analysis Report

Company Number: 13114334

Analysis Date: 2025-07-20 11:03 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, reflected in negative net assets and net current liabilities for the most recent financial year. This level of financial deterioration over a short period signals elevated risk for creditors and investors.

2. Key Concerns:

   • Negative Net Assets: The company reported net assets of -£7,234 as at 31 January 2024, indicating liabilities exceed assets, which undermines the company’s solvency.
   • Sustained Negative Working Capital: Net current liabilities stand at -£13,311, showing the company does not have adequate short-term assets to cover current liabilities, which raises liquidity and cash flow risk.
   • Rapid Financial Deterioration: Compared to 2023, when net assets were positive at £6,470, the company’s financial position has worsened considerably within one year, suggesting operational or financial instability.

3. Positive Indicators:

   • Active Status and Compliance: The company is active with no overdue filings for accounts or confirmation statements, indicating compliance with statutory requirements.
   • Micro-Entity Reporting: The company benefits from simplified reporting standards under the micro-entity regime, limiting administrative burden.
   • Stable Directorship: Two directors have been in place since incorporation, which may imply stable leadership.

4. Due Diligence Notes:

   • Profit and Loss Analysis: Investigate the company’s profit and loss account and cash flow statements for the last two years to understand causes of the sharp decline in net assets and worsening working capital.
   • Debt Profile: Review details of current liabilities to assess the nature and maturity of debts, and whether there are any overdue payables or potential defaults.
   • Future Prospects and Business Model: Examine management commentary or strategic plans to evaluate operational stability and the company’s ability to return to profitability.
   • Directors’ Conduct and Related Party Transactions: Confirm that directors’ conduct records are clean and assess any related party transactions that could impact financial health.
   • External Funding or Support: Ascertain if the company has access to external funding or shareholder support to alleviate liquidity pressures.