Company Number: 13186134

Analysis Date: 2025-07-19 12:53 UTC

1. Risk Rating: MEDIUM

Justification: The company shows a significant deterioration in its liquidity position as of the latest financial year ending January 31, 2024. Net current assets have swung from positive £173 in 2023 to a negative £1,637 in 2024, indicating current liabilities now exceed current assets by a substantial margin. While the company remains active and filings are up to date, this liquidity pressure presents a solvency risk that warrants attention.

2. Key Concerns:

• Liquidity Decline: Current liabilities increased sharply from £550 in 2023 to £2,420 in 2024, while current assets remained largely flat, resulting in a negative working capital position.
• Erosion of Net Assets: Net assets have fallen from £686 in 2023 to £228 in 2024, highlighting potential capital depletion.
• Small Scale and Limited Capital: With a share capital of only £1,000 and a micro-entity classification, financial resilience is limited, raising concerns about the company’s ability to withstand financial stress.

3. Positive Indicators:

• Timely Compliance: The company is current with both accounts and confirmation statement filings, indicating good regulatory compliance.
• Stable Employee Base: The average number of employees remained constant at 2, suggesting operational stability at a small scale.
• Asset Growth: Fixed assets have increased modestly from £513 to £1,865, which may indicate some investment in the business.

4. Due Diligence Notes:

• Investigate the nature and timing of the increased current liabilities to understand if they are short-term payables, accruals, or potentially overdue debts.
• Review cash flow statements or management accounts if available to assess operational cash generation and liquidity management.
• Clarify the business model and revenue streams given the company operates in educational support services and other professional technical activities, to evaluate sustainability.
• Confirm if there are any contingent liabilities or off-balance-sheet obligations not reflected in the micro-entity accounts.
• Assess related party transactions or director loans that may impact financial stability.