Company Number: 13020500

Analysis Date: 2025-07-20 14:39 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency concerns with negative net asset values and liabilities greatly exceeding assets. The small scale of operations and minimal current assets relative to current liabilities suggest poor liquidity and cash flow challenges. These factors combined indicate elevated financial risk.

2. Key Concerns:

• Persistent negative net assets and increasing current liabilities (from £3,235 in 2022 to £8,296 in 2023) indicate worsening financial position and potential insolvency risk.
• Lack of fixed assets and minimal current assets (£684 in 2023) imply limited collateral or resource base to support operations or debt servicing.
• No employees reported and minimal turnover as a micro-entity, raising questions on operational sustainability and business scale.

3. Positive Indicators:

• The company is current with both accounts and confirmation statement filings, indicating compliance with regulatory requirements.
• Shareholder control is consolidated under a single individual, potentially allowing for swift decision-making.
• Incorporation is recent (2020), and despite losses, there is some positive movement in net current assets between 2022 and 2023, albeit from a low base.

4. Due Diligence Notes:

• Investigate detailed cash flow statements and revenue streams to assess liquidity management and operational viability.
• Clarify the nature of current liabilities and whether these include related party debts or short-term borrowings.
• Review business plan and market positioning for the educational support services sector to understand growth prospects.
• Understand the role and strategy of the directors, particularly given no employees and limited assets.
• Confirm any contingent liabilities or off-balance-sheet obligations not evident from micro-entity accounts.