SAFEGUARDING ACADEMY LTD

Executive Summary

Safeguarding Academy Ltd is currently financially distressed with negative net assets and minimal liquidity, reflecting its dormant status and lack of trading activity. Given the absence of operational revenue, insufficient cash flow, and negative equity, the company is unable to support credit facilities at this time. Close monitoring is advised should the business activity resume or financial conditions improve.

SAFEGUARDING ACADEMY LTD - Analysis Report

Company Number: 13375015

Analysis Date: 2025-07-20 18:09 UTC

1. Credit Opinion: DECLINE
   Safeguarding Academy Ltd shows a persistently weak financial position with negative net current assets and shareholders' funds approximating -£3,632 as of the latest accounts. The company does not appear to generate revenue or maintain positive operating cash flow, evidenced by negligible current assets (£22) and liabilities matching current assets in 2024 after prior years of significant creditor balances. The absence of employees and the SIC code indicating "Dormant Company" suggest minimal or no trading activity. This undermines confidence in the company's ability to service any debt or credit facility. Furthermore, the micro-entity status and exemption from audit limit financial transparency, adding risk.

2. Financial Strength:
   The balance sheet is fragile, with current liabilities equal to or exceeding current assets by a wide margin in prior years, only balanced out in the latest year by a reduction in liabilities to match minimal assets. There is no evidence of fixed assets or capital investment. Shareholders' funds remain negative, indicating accumulated losses and no capital buffer. The nominal share capital (£60) is immaterial to offset liabilities. Overall, the company has no financial cushion or asset base to absorb shocks.

3. Cash Flow Assessment:
   With current assets consisting mainly of cash or equivalents of £22 and no employees or apparent operational activity, cash inflows are presumably non-existent or minimal. The company’s working capital position is marginal at best, with liabilities historically exceeding assets. This indicates insufficient liquidity to meet short-term obligations or unexpected expenses. The company’s dormant status further implies negligible operating cash flow generation.

4. Monitoring Points:

• Confirm if the company resumes trading and generates revenue or cash flows.
• Monitor changes in current liabilities and assets for improvement or worsening liquidity.
• Watch for material changes in directors or ownership that might impact financial strategy.
• Review future accounts for any evidence of capital injections or operational turnaround.
• Check for any overdue filings or regulatory compliance issues.