Company Number: 13062907

Analysis Date: 2025-07-19 12:46 UTC

1. Credit Opinion: APPROVE
   Tertio Ltd demonstrates a solid financial foundation with positive net current assets and net assets increasing steadily year over year. The absence of overdue filings and the director's consistent control indicate stable management. Given the company's micro size and modest liabilities, it appears capable of meeting its short-term obligations and servicing modest credit facilities. However, as a single-employee educational services provider with limited scale, credit exposure should remain proportionate to its size and risk profile.

2. Financial Strength:
   The company's balance sheet shows strong liquidity and capitalization for its size. Current assets have risen from £26.9k in 2020 to £113.4k in 2024, while current liabilities remain low at £5.2k, resulting in net current assets of £108.2k. Net assets have grown consistently from £21.7k to £108.2k, fully represented by shareholder funds, indicating no external debt. This growth suggests prudent financial management and profitable operations or retained earnings accumulation despite no detailed profit and loss data.

3. Cash Flow Assessment:
   With current assets largely exceeding current liabilities, the company maintains healthy working capital. The low level of creditors relative to cash/debtors indicates good short-term liquidity and the ability to cover near-term debts without strain. The single employee and micro entity status limit complexity in cash flow, reducing risk of operational cash shortfalls. However, detailed cash flow statements are unavailable, so ongoing monitoring of cash generation from operations is advised.

4. Monitoring Points:

• Maintain focus on receivables and cash levels to ensure liquidity remains robust given small scale.
• Watch for any significant changes in liabilities or operational scale that might affect working capital needs.
• Monitor director engagement and governance as the company is closely held by one individual.
• Ensure timely filing continues, safeguarding regulatory standing and transparency.
• Track any changes in industry conditions for "Other education not elsewhere classified" that could impact revenue stability.