PRIME TUITION SERVICES LIMITED

Executive Summary

Prime Tuition Services Limited shows a robust and improving financial position with strong liquidity and compliance. Key risks relate to the significant increase in liabilities and reliance on a parent entity, which warrant further review. Overall, the company appears financially stable and operationally active within its sector.

PRIME TUITION SERVICES LIMITED - Analysis Report

Company Number: 13789754

Analysis Date: 2025-07-20 17:26 UTC

1. Risk Rating: LOW
   Prime Tuition Services Limited demonstrates a solid financial position with increasing net assets and strong liquidity as of the latest financial year end. There are no overdue filings or signs of regulatory non-compliance, supporting a low-risk assessment at this stage.

2. Key Concerns:

• Increasing Creditors: Current liabilities have more than tripled from £64.7k in 2022 to £211k in 2023, and long-term creditors have also increased substantially. The rationale and nature of these liabilities should be examined to ensure they are sustainable and not indicative of cash flow stress.
• Reliance on Parent Company: The ultimate control by London Prime Tuition Ltd (holding 75-100% shares and voting rights) suggests potential dependency on the parent for capital or operational support, which could present a concentration risk.
• Rapid Growth Management: Employee numbers increased from 36 to 44 within one year, and current assets (notably cash and debtors) have grown significantly. While growth is positive, operational scalability and effective cash management should be confirmed.

3. Positive Indicators:

• Strong Liquidity Position: Cash reserves increased to £396k, comfortably covering current liabilities (£211k), yielding a net current asset position of £265k. This supports the company’s ability to meet short-term obligations.
• Profit Retention and Asset Growth: Net assets nearly quadrupled from £54.9k in 2022 to £204k in 2023, indicating retained earnings and asset accumulation, which strengthens the balance sheet.
• Timely Compliance: No overdue accounts or confirmation statements, demonstrating good regulatory compliance and governance practices.
• Clear Business Focus: The company operates in educational support and child day-care activities, with an active website and multiple contact points, indicating operational presence and market engagement.

4. Due Diligence Notes:

• Investigate the composition and terms of increased current and long-term creditors to assess any potential financial strain or contingent liabilities.
• Review cash flow statements and profit and loss data (if available) to confirm that cash reserves are generated sustainably rather than from external financing or non-recurring sources.
• Understand the relationship and financial support mechanisms between Prime Tuition Services Limited and the parent company London Prime Tuition Ltd.
• Verify the operational effectiveness of growth in staff and client base to ensure scalability without overextension.
• Confirm that the directors’ responsibilities and governance frameworks are robust given the company’s growth and ownership structure.