TAZKIYAH INTERNATIONAL ACADEMY OF ISLAMIC STUDIES LTD

Executive Summary

Tazkiyah International Academy of Islamic Studies Ltd demonstrates adequate financial stability with positive net assets and liquidity to service short-term obligations. However, declining equity and increasing liabilities, particularly director loans, warrant cautious approval and ongoing monitoring. The company’s small size and stable management provide some confidence but require attention to cash flow and creditor payments.

TAZKIYAH INTERNATIONAL ACADEMY OF ISLAMIC STUDIES LTD - Analysis Report

Company Number: 12610468

Analysis Date: 2025-07-19 12:25 UTC

1. Credit Opinion: APPROVE with caution. Tazkiyah International Academy of Islamic Studies Ltd is a small private limited company operating in education with a stable operating history since 2020. The company exhibits positive net assets and working capital, indicating the ability to meet short-term obligations. However, the declining net assets and net current assets trend over recent years suggest some deterioration in financial strength. The director’s significant control and consistent management implies stable governance, but limited equity and small scale call for careful monitoring of liquidity and profitability.

2. Financial Strength: The balance sheet shows modest tangible fixed assets (£6,057 in 2024) and a positive net asset position of £9,639 as of 31 May 2024, down from £11,087 in 2023 and £17,875 in 2021. Shareholders’ funds mirror net assets, reflecting retained earnings as the main equity source. Current liabilities have increased to £4,632 in 2024 from £2,948 in 2023, impacting net current assets which declined from £4,124 to £3,582. The company is classified as a small entity with minimal share capital (£1), relying on retained profits and director loans (£1,301 in 2024) for financing. The increasing reliance on director loans may reflect external financing constraints.

3. Cash Flow Assessment: Cash balances improved slightly to £8,214 in 2024 from £7,072 the prior year, supporting liquidity. Positive net current assets indicate working capital adequacy to cover short-term liabilities. However, the increase in current liabilities, particularly taxes and social security (£3,331 in 2024), should be monitored to avoid cash flow strain. The company maintains a small workforce (3 employees), which helps control operating costs. No audit requirement suggests limited complexity but also less external validation of financial robustness.

4. Monitoring Points:

• Continued monitoring of net asset and net current asset trends for further decline.
• Watch director loan balances and repayment schedules to ensure they do not overly leverage the company.
• Track timely settlement of tax and social security liabilities to avoid regulatory issues.
• Monitor cash flow sufficiency during key periods, especially given modest cash reserves.
• Review profitability metrics once profit and loss data are available for a fuller credit assessment.