TREETOP TUITION LTD

Executive Summary

Treetop Tuition Ltd shows ongoing financial distress with negative net assets and liquidity shortfalls, raising high solvency and operational risks. While regulatory compliance is maintained and ownership stable, the company’s current financial trajectory poses significant concerns for investors. Further investigation into its liabilities and recovery strategy is essential before considering investment.

TREETOP TUITION LTD - Analysis Report

Company Number: 13164077

Analysis Date: 2025-07-29 16:05 UTC

1. Risk Rating: HIGH
   The company exhibits persistent and significant net liabilities with negative shareholders’ funds and net current liabilities, indicating solvency concerns and potential difficulty meeting short-term obligations.

2. Key Concerns:

• Solvency Risk: The company’s net assets are negative (£-3,290 as of 31 Jan 2024) and shareholders’ funds remain deeply negative for multiple years, reflecting accumulated losses and erosion of equity.
• Liquidity Concerns: Net current assets are negative by over £10,000, with current liabilities (£20,115) substantially exceeding current assets (£9,777), indicating potential cash flow constraints.
• Operational Stability: Despite being active since 2021, the company continues to report losses with no sign of profitability or equity recovery. The small scale and limited tangible assets offer little cushion.

3. Positive Indicators:

• Timely Filings: The company is current with its accounts and confirmation statement filings, indicating regulatory compliance and no immediate governance red flags.
• Experienced Control: The sole director and 75-100% shareholder, Mr. Jiaur Rahman Hashim, appears to have stable control and no public records of disqualification or misconduct.
• Cash Position: Though limited, the company maintains some cash balance (£8,589), which may support short-term operations.

4. Due Diligence Notes:

• Investigate the nature and terms of the hire purchase contracts, which represent a significant portion of liabilities both short and long term and may impact cash flow due to repayments or covenants.
• Review the company’s business model and revenue generation plans to assess how it intends to return to profitability and improve net asset position.
• Assess related party transactions or director loans that may not be fully transparent in these filings but could affect financial stability.
• Confirm no outstanding tax or legal disputes exist beyond reported social security and tax creditor balances.