Company Number: 13546548

Analysis Date: 2025-07-29 19:04 UTC

1. Risk Rating: HIGH

Justification: The company exhibits persistent and significant net current liabilities and very low net assets over multiple years, indicating ongoing solvency and liquidity pressures. Although there was a slight improvement in the latest year, net current liabilities remain negative and net assets are almost nil (£2). The company relies heavily on director advances, which although reduced in the latest year, still represent a substantial creditor balance. The company is relatively new (incorporated 2021) and operates in a niche sector with only two employees, which may limit operational scalability.

2. Key Concerns:

• Persistent negative working capital: Net current liabilities remain significantly negative (£-4,634 in 2024), indicating potential liquidity risk and challenges in meeting short-term obligations.
• Extremely low net asset base: Net assets have improved from a deficit of over £15k to just £2, suggesting limited financial buffer to absorb losses or shocks.
• Reliance on director loans: Significant director current account credit balance (£5,049) indicates dependency on shareholder funding to sustain operations, which may not be sustainable long term.

3. Positive Indicators:

• Recent reduction in liabilities: Current liabilities decreased markedly from £32,761 in 2023 to £11,367 in 2024, reflecting some efforts to improve financial position.
• Increase in fixed assets: Tangible fixed assets increased to £5,724, which may indicate investment in operational capacity or infrastructure.
• Compliance with filing requirements: The company is up to date with both accounts and confirmation statement filings, showing regulatory compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of director advances and the company’s plans for repaying or restructuring these balances.
• Review cash flow statements and forecasts to assess the company’s ability to meet short-term liabilities and improve working capital.
• Understand the operational model and revenue generation given the SIC classification (Other education not elsewhere classified) and its sustainability.
• Assess any contingent liabilities or off-balance sheet obligations not disclosed.
• Confirm absence of any regulatory or legal issues given the company’s young age and financial challenges.