Company Number: 12389654

Analysis Date: 2025-07-20 18:38 UTC

1. Risk Rating: HIGH
   The company exhibits a persistently negative net asset position and significant net current liabilities, indicating solvency risks. The working capital deficiency has deteriorated over several years without signs of improvement, raising concerns about the company’s ability to meet short-term obligations.

2. Key Concerns:

• Negative Net Assets and Working Capital Deficit: The company’s net liabilities stand at approximately £52,484 as of the latest accounts, worsening from prior years. This long-term undercapitalization suggests ongoing financial distress.
• Minimal Current Assets Relative to Liabilities: Current assets have sharply declined to £285 in 2024 from £9,601 in 2020, while current liabilities remain high (~£53k), indicating acute liquidity constraints.
• No Reported Share Capital or Capital Injection: The share capital remains nominal (£1), with no evidence of equity funding or external capital to offset accumulated losses, presenting sustainability concerns.

3. Positive Indicators:

• Timely Filings and Compliance: The company’s accounts and confirmation statements are filed on time with no overdue filings, reflecting regulatory compliance and good governance practices.
• Active Website and Contact Information: The presence of an active website and contact emails suggests ongoing operations and attempts at maintaining customer or stakeholder engagement.
• Single Director with Consistent Appointment: A single director and secretary appointed since incorporation may simplify governance and decision-making.

4. Due Diligence Notes:

• Investigate the nature of the company’s liabilities to understand creditor composition and any potential risks of enforcement or insolvency proceedings.
• Review cash flow statements or management accounts, if available, to assess operational cash generation or reliance on external funding.
• Confirm whether there are any contingent liabilities, related party transactions, or off-balance sheet obligations not reflected in the micro-entity accounts.
• Assess business model viability within the educational support services sector given the sustained financial losses.
• Verify background and financial standing of the sole director to evaluate management capability and any potential personal guarantees.