Risk Assessment: STUDIES PLANET . COM LIMITED

1. Risk Rating: MEDIUM

Justification: While the company maintains positive net assets and a seemingly healthy current ratio, the long-term trajectory of significant asset erosion, combined with micro-entity filing opacity, raises material concerns about business viability and operational sustainability. The recent modest recovery in net assets partially mitigates but does not eliminate concerns about the underlying business contraction.

2. Key Concerns

Concern 1: Severe Long-Term Net Asset Decline

The company has experienced a dramatic contraction in net assets from £187,291 (2017) to £41,285 (2025) – a decline of approximately 78% over eight years. Total assets have fallen from £266,406 to £46,111 in the same period. This sustained erosion suggests either persistent trading losses, significant asset write-offs, or substantial dividend extractions that have materially weakened the balance sheet.

Concern 2: Limited Financial Transparency

As a micro-entity, the company files abbreviated accounts with no requirement for a profit & loss statement, cash flow statement, or detailed notes. Turnover is only disclosed for one year in the available history (2023: £114,338), making it impossible to assess revenue trends, profitability, or operational performance with any confidence. The accounts explicitly state "No description of principal activity," which is atypical and further obscures understanding of the business model.

Concern 3: Corporate PSC Structure and Control

Crizac Ltd holds between 50% and 75% of the company's shares, giving this corporate entity majority control. Without understanding Crizac Ltd's jurisdiction, financial health, or relationship to the directors, this concentration of control represents a governance risk. Related-party transactions and potential conflicts of interest cannot be assessed from available filings.

3. Positive Indicators

Recent Balance Sheet Improvement

Net assets increased from £27,713 (2024) to £41,285 (2025), representing a 49% improvement year-on-year. Current liabilities decreased significantly from £23,893 to £4,826, suggesting debt reduction or creditor settlement.

Strong Current Ratio

The 2025 current ratio stands at approximately 9.5:1 (£45,735 current assets against £4,826 current liabilities), indicating no immediate liquidity stress. Net current assets of £40,909 provide a reasonable buffer.

Filing Compliance

Both accounts and confirmation statements are up to date with no overdue filings. The company has maintained active status since incorporation in 2007, demonstrating institutional persistence through multiple economic cycles.

Low Leverage

With total liabilities of only £4,826 against total assets of £46,111, the company carries minimal debt. This reduces solvency risk in the near term.

4. Due Diligence Notes

Priority Investigations:

1. Crizac Ltd: Identify this entity's jurisdiction, ownership, financial position, and relationship to the directors. Determine whether related-party transactions exist and their nature.

2. Revenue and Profitability: Request management accounts to understand turnover trends since 2023, gross margins, and whether the company is currently profitable. The single disclosed turnover figure of £114,338 (2023) is insufficient for trend analysis.

3. Asset Composition: Clarify what constitutes the £45,735 in current assets. The nature of these assets (cash, receivables, or other) significantly affects liquidity risk assessment. Cash at bank was only £3,337 in 2016 – the most recent year this was disclosed.

4. Historical Decline Explanation: Investigate the causes behind the 78% net asset decline between 2017-2025. Was this driven by trading losses, extraordinary write-offs, or dividend distributions? Each scenario carries different risk implications.

5. Director Discrepancy: The officers list names "Christopher Flood NAGLE" as a current director, yet the latest accounts only reference "Erika Iveth Rodrigez Sanchez" (note spelling variation from officers list). Clarify Mr. Nagle's role and date of appointment.

6. Business Model Viability: The SIC codes (market research, education, other services) combined with the website domain suggest an online education/research platform. Assess whether the asset decline reflects a deliberate pivot or business deterioration.

7. Fixed Assets: At only £376, the company appears to have negligible tangible or intangible assets. Understand whether this reflects an asset-light model or disposal of previously held assets.