TRANSCENDANCE ACADEMY LTD

Executive Summary

Transcendance Academy Ltd is an early-stage micro entity with weak financial metrics including negative net assets and poor working capital coverage. The company’s limited scale and negative equity position indicate a high credit risk and constrained ability to service debt. Credit facilities are not recommended without significant improvement in financial health and cash flow generation.

TRANSCENDANCE ACADEMY LTD - Analysis Report

Company Number: 14502235

Analysis Date: 2025-07-29 12:33 UTC

1. Credit Opinion: DECLINE
   Transcendance Academy Ltd shows significant financial weakness and limited operating history, being incorporated in late 2022 with only one accounting period filed. The balance sheet reveals negative net assets of £8,549, driven by creditors falling due after more than one year of £10,986 exceeding current assets of £1,657 and net current liabilities of £3,963. This indicates a distressed capital structure and insufficient liquidity to meet short- and long-term obligations. The company’s micro-entity status and single employee suggest a very small scale operation with limited diversification or resilience. Without evidence of positive cash flow or profit generation, the risk of default is high.

2. Financial Strength: Weak
   The company’s financial statements show a negative net asset position of £8,549, which means liabilities exceed assets. Notably, long-term creditors are £10,986 against total assets less current liabilities of only £2,437. Current liabilities exceed current assets by £3,963, reflecting poor working capital management or insufficient cash reserves. The absence of fixed assets and minimal current assets further limits collateral value or financial flexibility. This weak capital base undermines the company’s ability to absorb shocks or invest for growth.

3. Cash Flow Assessment: Constrained
   Current assets of £1,657, likely comprising cash and receivables, are insufficient to cover current liabilities of £5,620, resulting in a negative working capital position. This suggests the company may struggle to meet short-term obligations as they fall due. The presence of long-term creditors without corresponding asset backing adds to liquidity pressure. The company’s micro scale and single employee indicate limited operational cash generation capacity, increasing reliance on external funding or director support.

4. Monitoring Points:

• Cash flow trends in subsequent periods to assess improvement or further deterioration in liquidity
• Changes in creditor balances and any restructuring of debt terms
• Evidence of profitability or revenue growth to underpin financial stability
• Director conduct and related party transactions given the single majority shareholder/director structure
• Filing compliance and timeliness to ensure ongoing regulatory adherence