NORD TUITION LIMITED

Executive Summary

Nord Tuition Limited shows signs of financial fragility with a sharp decrease in net assets and limited equity buffer despite positive working capital. While the company remains operational with stable filings, it faces significant risks without improvements in profitability and capital structure. Immediate focus on strengthening financial controls, boosting earnings, and rebuilding equity is advised to ensure sustainable growth and avoid insolvency risk.

NORD TUITION LIMITED - Analysis Report

Company Number: 13256879

Analysis Date: 2025-07-29 12:34 UTC

Financial Health Assessment Report: NORD TUITION LIMITED

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1. Financial Health Score: C

Explanation:
The company shows some basic signs of financial stability but also clear symptoms of financial stress. It maintains positive net current assets and small positive net assets, which suggests minimal buffer to absorb shocks. However, the sharp decline in net assets from £5,626 in 2021 to £1 in 2024 signals significant erosion of equity, indicating underlying distress. The financial position is fragile, warranting close monitoring and corrective measures.

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2. Key Vital Signs

Metric	31 Mar 2024	Interpretation
Fixed Assets	£224	Minimal investments in long-term assets; typical for micro entity.
Current Assets	£2,065	Small cash or receivables supporting short-term liquidity.
Current Liabilities	£1,478	Debts due within a year; manageable but growing compared to assets.
Net Current Assets	£587	Positive working capital, indicating ability to meet short-term obligations.
Total Assets less CL	£811	Total resources after subtracting short-term debts; low.
Net Assets / Shareholders’ Funds	£1	Equity almost wiped out, indicating erosion of retained earnings or accumulated losses.
Share Capital	£1	Nominal capital, common in small private limited companies.
Staff Numbers	1	Sole director/employee, indicating very small scale operation.

Trend Analysis:

• Net assets decreased dramatically from £5,626 (2021) to £1 (2024).
• Current assets slightly increased, but liabilities nearly doubled in 3 years, squeezing net working capital.
• Accruals and deferred income remain stable but are nearly equal to net assets, indicating limited financial cushion.

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3. Diagnosis: What the Financial Data Reveals

Symptoms of Financial Distress:

• The drastic reduction in net assets and shareholders’ funds is a key symptom of financial strain, possibly from losses or withdrawals.
• The small net current asset position suggests a fragile liquidity situation; the company can meet short-term debts but with little margin for error.
• Minimal fixed assets and staff imply the company operates on a lean basis but may lack capacity for growth or absorbing financial shocks.
• The lack of an audit and prepared accounts under micro-entity regime signals a very small business that may lack detailed financial controls and insights.

Underlying Causes to Investigate:

• Operating losses or withdrawals eroding equity.
• Possibly limited revenue generation or high expenses relative to income.
• The company changed names twice in 2024, which may indicate restructuring or rebranding efforts possibly linked to financial or strategic challenges.
• Sole control by one director/shareholder may limit external oversight or capital infusion.

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4. Prognosis: Future Financial Outlook

If current trends continue without intervention, the company risks insolvency due to minimal equity and tight working capital. However, the company is still active, with positive net current assets and no overdue filings, suggesting operational continuity for now. Growth or recovery will require improving profitability and strengthening equity.

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5. Recommendations: Specific Actions to Improve Financial Wellness

• Boost Profitability: Review pricing, cost controls, and marketing to increase revenues and reduce losses. Consider diversifying income streams or enhancing service offerings.
• Strengthen Capital Base: Inject additional equity or seek external investment to rebuild shareholders’ funds and buffer against financial shocks.
• Improve Cash Flow Management: Monitor receivables and payables closely, negotiate longer payment terms with suppliers, and tighten credit controls on clients.
• Financial Reporting & Controls: Even as a micro entity, establish better financial tracking and forecasting to identify issues early. Consider voluntary audit or external financial advice for transparency and confidence building.
• Strategic Review: Assess the reasons behind recent name changes and evaluate the business model’s sustainability and growth potential. Explore partnerships or collaborations to leverage resources.
• Director’s Personal Risk: Given sole control and ownership, the director should be cautious about personal guarantees or liabilities. Maintain clear separation of personal and business finances.

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Medical Analogy Summary

NORD TUITION LIMITED exhibits a "weak pulse" in its financial vitals, with diminishing "equity health" akin to a patient with declining energy reserves. The "symptoms of distress"—notably eroding net assets—signal a need for immediate "treatment" through capital infusion and operational improvements to avoid "financial collapse." The company currently "breathes" with a fragile liquidity buffer but requires proactive care to regain robust financial "wellness."

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