THE TUTELAGE ENGLISH CLASSES LTD

Executive Summary

The Tutelage English Classes Ltd presents a low risk profile supported by positive net assets, increasing cash reserves, and compliance with statutory filings. However, the marked increase in current liabilities, limited operational scale, and absence of audited or detailed financial statements suggest a need for further inquiry into creditor obligations and operational cash flow sustainability. Overall, the company appears solvent and compliant but should be monitored for liquidity risks stemming from growing short-term liabilities.

THE TUTELAGE ENGLISH CLASSES LTD - Analysis Report

Company Number: 13680058

Analysis Date: 2025-07-29 16:57 UTC

1. Risk Rating: LOW
   The company demonstrates positive net current assets and increasing shareholders’ funds over the last two years, indicating sound solvency and liquidity. No overdue filings or liquidation status are present, supporting low regulatory risk.

2. Key Concerns:

• Rising current liabilities: Current liabilities increased significantly from £8,169 in 2022 to £26,347 in 2023, mainly due to other creditors rising from £1,379 to £18,675. This warrants scrutiny to ensure these obligations are manageable and not causing cash flow strain.
• Small scale and limited employee base: With only one employee (the director) and micro-sized financials, the business may be vulnerable to operational risks or dependency on a single individual.
• Lack of audited accounts and limited financial disclosure: The company has taken advantage of audit exemption and has not filed an income statement, limiting insight into profitability and operational performance.

3. Positive Indicators:

• Positive net current assets and increasing cash balances (£16,687 to £37,573) suggest improving liquidity and ability to cover short-term obligations.
• Shareholders' funds increased from £8,518 to £11,226, reflecting accumulation of retained earnings and a stable equity base.
• Company is compliant with filing deadlines for accounts and confirmation statements, indicating good regulatory adherence.
• The sole director and 100% controlling shareholder appears stable with no red flags regarding conduct or disqualification.

4. Due Diligence Notes:

• Investigate the nature and terms of the increased other creditors to assess any potential liquidity or solvency risk.
• Request management accounts or cash flow statements to better understand operational cash generation and sustainability.
• Review any contractual obligations or contingent liabilities not disclosed in the accounts.
• Confirm if there is any reliance on director loans or related party transactions that might influence financial stability.
• Assess future business plans and client concentration to evaluate operational risk given the micro scale and single employee structure.