Company Number: 13888776

Analysis Date: 2025-07-20 19:18 UTC

1. Risk Rating: MEDIUM
   The company shows modest net assets and is meeting its filing obligations on time, which supports a baseline level of operational compliance. However, negative net current assets and limited financial scale raise concerns about short-term liquidity and operational resilience.

2. Key Concerns:

• Negative working capital as of the latest financial year (net current liabilities of £871), indicating potential short-term liquidity pressure.
• Very small asset base and low absolute levels of current assets (£4,034), which may limit the company’s ability to absorb financial shocks.
• Reliance on director loans (noted in the accounts) suggests external funding support that could affect financial stability if withdrawn.

3. Positive Indicators:

• The company is current with all statutory filings, demonstrating regulatory compliance and good governance practices.
• Net assets have increased from £100 to £1,913 over two years, showing some capital growth and possibly improved financial footing.
• The company employs two directors who are also the primary controllers, which may facilitate aligned strategic decision-making and oversight.

4. Due Diligence Notes:

• Investigate the nature, terms, and sustainability of director loans included in debtors to assess potential risks if these funds are recalled.
• Review cash flow statements and bank statements (if available) to evaluate liquidity management and operational cash generation.
• Assess the company’s business model viability and planned growth, given the micro-entity scale and negative working capital.
• Confirm if any contingent liabilities or off-balance-sheet obligations exist that could exacerbate liquidity or solvency risk.
• Verify directors’ experience and capacity to manage financial challenges given their primary occupation as teachers and the company’s educational focus.