LEARN TO SUPPORT LTD

Executive Summary

Learn To Support Ltd is an early-stage company with limited financial history and weak balance sheet metrics characterized by negative working capital and minimal equity. Cash flow is constrained with reliance on director loans and no employees, signaling operational infancy and funding risk. Credit facilities are not recommended until the company demonstrates improved liquidity, positive trading performance, and stronger financial resilience.

LEARN TO SUPPORT LTD - Analysis Report

Company Number: 14949806

Analysis Date: 2025-07-20 14:49 UTC

1. Credit Opinion: DECLINE
   Learn To Support Ltd presents significant credit risk at this early stage of operations. The company was incorporated less than two years ago and has minimal financial history. The latest accounts reveal a negative debtor balance (£-5,400) and current liabilities (£16,203) that exceed current assets (£2,100), indicating working capital strain. Additionally, shareholder funds stand at a nominal £497, reflecting very limited equity cushioning. The absence of employees and reliance on director loans (£15,000) to fund the business further highlights limited operational scale and external funding sources. Without positive trading history or stronger liquidity, the company is unlikely to service debt or commercial obligations reliably at present.

2. Financial Strength: Weak
   The balance sheet shows tangible fixed assets valued at £14,600 but no accumulated depreciation, suggesting assets are fully valued at cost. Current liabilities exceed current assets significantly, leading to negative net working capital. The loan from directors (£15,000) constitutes most long-term liabilities, indicating founder funding rather than external debt. Shareholders’ funds are low at £497, which provides minimal buffer against losses. Overall, the company’s financial structure is fragile with a small equity base and working capital deficit.

3. Cash Flow Assessment: Constrained Liquidity
   Cash at bank is £7,500, which on face value should support short-term liquidity. However, the negative debtor figure suggests accounting adjustments or prepayments rather than true receivables, and current liabilities of £16,203 exceed cash and current assets combined, indicating potential cash flow pressure. The company’s lack of employees and operational scale also point to limited ongoing cash inflows. Reliance on director loans implies external financing options are limited or unavailable. The business currently lacks robust cash flow generation or working capital adequacy.

4. Monitoring Points:

• Improvement in working capital metrics, particularly reduction of current liabilities relative to current assets
• Generation of positive operating cash flows and evidence of trade receivables rather than negative debtor balances
• Increase in shareholder equity through retained earnings or capital injections
• Filing of subsequent accounts and confirmation statements on time to ensure ongoing compliance
• Business development progress reflecting ability to scale operations and generate sustainable revenue