PANDA EDUCATION GROUP LTD

Executive Summary

PANDA EDUCATION GROUP LTD demonstrates improving financial health with increased net assets and working capital, supported by a modest level of long-term debt. The company’s micro-entity scale and single director control require cautious credit exposure and ongoing monitoring of liquidity and governance. Approval is recommended with limits and conditions to mitigate risk.

PANDA EDUCATION GROUP LTD - Analysis Report

Company Number: 13136885

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: APPROVE with conditions.
   PANDA EDUCATION GROUP LTD shows improving financial strength evidenced by increased net assets and working capital over the last two years. The company is young but active and has no overdue filings. However, given its micro-entity status and modest asset base, credit exposure should be limited and subject to periodic review. The presence of a single director with full control necessitates careful monitoring of governance and financial discipline.

2. Financial Strength:

• Net assets increased from £1,443 (2023) to £14,042 (2024), suggesting retained earnings or capital injection.
• Fixed assets are minimal (£496), indicating limited investment in long-term assets.
• The company has taken on £50,000 of long-term liabilities as of 2024, increasing leverage but also providing capital for growth.
• The micro-entity classification and small scale limit financial cushioning against adverse events.

3. Cash Flow Assessment:

• Current assets rose to £82,226 with current liabilities reduced to £17,960, resulting in strong net current assets of £64,266, indicating solid short-term liquidity.
• The company has enhanced its working capital position significantly from prior year (£1,169), suggesting improved operational cash flow or capital injections.
• Absence of an audit and limited disclosures mean cash flow quality should be confirmed through ongoing monitoring.

4. Monitoring Points:

• Watch the servicing of the £50,000 long-term liabilities to ensure the company manages its debt prudently.
• Monitor revenue growth and profitability metrics when available to confirm sustainability of capital growth.
• Keep track of director conduct and governance given sole control by Mr. Hong.
• Review subsequent filings for any delays or adverse changes in financial position.