TECHNIQUE LEARNING SOLUTIONS LTD
Company number 07513642 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: TECHNIQUE LEARNING SOLUTIONS LTD
1. Credit Opinion: DECLINE
Reasoning: This company is currently in Administration. The fundamental premise of credit assessment — the ability to service debt obligations — is already compromised. Administrators have been appointed, indicating the company has been unable to meet its financial commitments and creditor interests are now being managed through a formal insolvency process. No new credit facilities should be extended, and any existing exposure should be migrated to workout or written off as appropriate.
The financial trajectory visible in the last filed accounts (February 2021) was already showing significant deterioration, with current liabilities nearly tripling year-on-year and working capital collapsing.
2. Financial Strength
Balance sheet deterioration evident in last filed period (Feb 2021):
| Metric | 2020 | 2021 | Change |
|---|---|---|---|
| Net Assets | £419,688 | £350,679 | -16.4% |
| Current Liabilities | £233,315 | £660,837 | +183.1% |
| Net Current Assets | £370,947 | £57,935 | -84.4% |
- Capital erosion: P&L reserve fell from £187,354 to £118,345 — a £69,009 reduction representing sustained trading losses
- Leverage shift: The dramatic increase in current liabilities without corresponding current asset growth suggests trade creditor build-up or demands for repayment, classic precursors to insolvency
- Intercompany exposure: £211,798 owed by related parties (Beomic Ltd £122,175; Technical Learning Solutions Ltd £61,123; Accrete Limited £27,500). These balances are effectively frozen in the administration and likely impaired
- Tangible assets of £348,758 are heavily weighted toward plant/machinery and leasehold improvements — likely to realise significantly below book value in a forced sale scenario
Historical context: The company traded from a negative net asset position (£-84,915 in 2014) to apparent strength by 2018-2020, before reversing sharply. This pattern suggests the business model was never sustainably capitalised.
3. Cash Flow Assessment
Liquidity position was critically impaired even before administration:
- Current ratio (2021): 718,772 / 660,837 = 1.09x — barely above 1.0, and this assumes full realisation of WIP and trade debtors at book value
- Working capital of just £57,935 against a business with £1M+ in assets is dangerously thin
- Cash at bank of £131,005 is misleading — likely represents restricted funds or deposits against imminent creditor demands
- Work in progress of £182,690 may not be convertible to cash if courses cannot be completed or revenue recognised under administration
Creditor payment stress signals: - Current liabilities tripled while trade activity (WIP growth) was modest - Creditor days likely extended significantly — suppliers were not being paid - Overdue statutory filings (accounts and confirmation statement) suggest management capacity was overwhelmed
4. Monitoring Points
Given the administration status, monitoring shifts from credit oversight to insolvency process tracking:
| Item | Status | Action Required |
|---|---|---|
| Administration progress | Active | Monitor administrator reports for dividend prospects |
| Accounts filing | Overdue (due Feb 2023) | Unlikely to be filed; administrators may file abbreviated statements |
| Confirmation statement | Overdue | Non-compliance indicator |
| Intercompany balances | £211,798 outstanding | Assess recoverability from related entities; check their status |
| Director conduct | Mr Mark Ian Crook | Check for disqualification proceedings; assess wrongful trading risk |
| Preferential creditors | Unknown | Determine employee claims (25 employees) and HMRC position |
Related entity investigation: Beomic Ltd, Technical Learning Solutions Ltd, and Accrete Limited should all be assessed for creditworthiness if any separate exposure exists. The intercompany loan pattern suggests a group structure with potential cross-guarantees or connected creditor positions.
Director note: Mr Crook holds >75% shareholding and voting rights and is the sole listed director. Under administration, his conduct will be reviewed by the insolvency practitioner. Any history of preferential payments or transactions at undervalue should be investigated.