PRIVATE TUTORING AND MENTORING LTD

Executive Summary

Private Tutoring And Mentoring Ltd exhibits a moderate risk profile characterized by declining net assets and modest liquidity despite regulatory compliance and clear ownership. The company's limited scale and dependence on a single director highlight operational vulnerabilities. Further due diligence on cash flows and debtor quality is recommended to fully assess financial stability.

PRIVATE TUTORING AND MENTORING LTD - Analysis Report

Company Number: 13250212

Analysis Date: 2025-07-20 14:19 UTC

1. Risk Rating: MEDIUM

Justification: The company shows modest net current assets and positive shareholders' funds, indicating some capacity to meet short-term liabilities. However, the declining net assets from £2,542 in 2023 to £569 in 2024, coupled with limited cash reserves (£2,335 in 2024), suggests tightening liquidity and potential solvency risks if this trend continues. The small scale of operations and single director structure also contribute to a moderate risk profile.

2. Key Concerns:

• Declining Net Assets and Working Capital: Net current assets decreased significantly from £2,542 in 2023 to £569 in 2024, indicating reduced buffer against liabilities.
• Cash Position: Cash on hand declined slightly and remains low (£2,335), which may constrain operational flexibility and timely payment of obligations.
• Single Employee and Director: The company employs only one person (likely the director), which raises concerns about operational resilience and dependency on a single individual.

3. Positive Indicators:

• Compliance: No overdue filings for accounts or confirmation statements, showing good governance and regulatory compliance.
• Ownership and Control: Clear control by a single shareholder/director simplifies decision-making and accountability.
• Stable Industry Classification: Operating in educational support and child day-care activities suggests steady demand areas, provided the company maintains quality service.

4. Due Diligence Notes:

• Investigate underlying reasons for decline in net assets and working capital between 2023 and 2024 to assess sustainability.
• Obtain cash flow statements to evaluate liquidity trends and ability to meet short-term obligations beyond balance sheet snapshots.
• Assess customer concentration and debtor aging, given the relatively high debtor balances (£5,690 in 2024) compared to cash.
• Confirm dependency on the single director for operations and management, and evaluate succession or contingency plans.
• Review any contingent liabilities or off-balance sheet exposures not evident from the filleted accounts.