Company Number: 13466159

Analysis Date: 2025-07-20 15:39 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net current asset position and positive shareholder funds, but there is a notable increase in current liabilities relative to current assets in the latest year, indicating some strain on short-term liquidity. The company is relatively young and small with limited financial history, so operational and cash flow stability are not yet established.

2. Key Concerns:

• Significant increase in current liabilities from £10,488 (2023) to £30,350 (2024), primarily tax and social security and other creditors, raising liquidity pressure.
• Low cash balance of £10,012 at year-end, down from £14,030 the prior year, combined with relatively tight net current assets of £958.
• Reliance on a single director and controlling shareholder with an overdrawn director loan account, which may pose governance and financial risk if not managed properly.

3. Positive Indicators:

• Positive net current assets and shareholders’ funds, indicating net solvency at the balance sheet date.
• Growth in tangible fixed assets suggests some investment in operational capacity.
• Compliance with filing deadlines and no overdue accounts or confirmation statements suggest good regulatory adherence.
• Increase in average employees from 3 to 5 implies some business growth and operational scaling.

4. Due Diligence Notes:

• Investigate the nature and timing of the increased current liabilities, especially tax and social security obligations, and confirm whether these are expected to be settled promptly.
• Review recent cash flow statements or management accounts to assess ongoing liquidity and working capital management since year-end.
• Assess the director loan account arrangements and repayment history to understand related party transactions and potential financial impact.
• Clarify the company’s revenue trends and profitability not reported in the filed accounts due to exemption from delivering the income statement.
• Evaluate business sustainability and client base stability given the company’s young age and sector (educational support services).