WEB3 COURSES LIMITED

Executive Summary

Web3 Courses Limited presents a sound initial financial position with positive net assets and working capital, supported by a strong equity base from its principal shareholder. However, the company’s significant long-term liabilities and lack of profit history warrant a cautious credit approach with conditions focused on cash flow management and ongoing financial performance. Regular monitoring of debtor collections and debt servicing will be essential to confirm ongoing creditworthiness.

WEB3 COURSES LIMITED - Analysis Report

Company Number: 14787431

Analysis Date: 2025-07-20 17:36 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Web3 Courses Limited is a newly incorporated private limited company (April 2023) operating in the IT services sector (SIC 62090). The company demonstrates a positive net asset position (£190k) and net current asset surplus (£204k), indicating initial financial stability. However, the company carries significant long-term liabilities (£205k) that roughly match its net current assets and fixed assets, suggesting reliance on external funding or shareholder loans. Given the company’s short operational history and lack of profit and loss disclosures, credit approval is recommended with conditions, including regular monitoring of cash flows, debt servicing capability, and progress in generating sustainable revenues.

2. Financial Strength:

• Total tangible fixed assets stand at £191,564, primarily plant and machinery, net of depreciation.
• Current assets total £277,616, comprising £72,453 in cash and £189,304 in trade and other debtors, demonstrating good liquidity in receivables.
• Current liabilities are relatively modest at £73,734, resulting in strong net current assets of £203,882.
• Long-term creditors amount to £205,171, creating a leveraged position that needs to be monitored carefully.
• Shareholders' funds are £190,275, representing a solid equity base for a company of this age and size.

3. Cash Flow Assessment:

• The company holds a reasonable cash balance (£72,453) relative to current liabilities, which suggests adequate short-term liquidity.
• Debtors are substantial, and timely collection will be crucial to maintaining cash flow.
• Working capital is positive, which supports ongoing operational requirements.
• No profit and loss details are available to assess operational cash generation; thus, reliance on shareholder funds or other financing may be necessary in the short term.
• Close attention should be paid to cash conversion cycles and creditor payment terms to avoid liquidity stress.

4. Monitoring Points:

• Track revenue growth and profitability trends in subsequent accounting periods to assess business viability and debt servicing capacity.
• Monitor debtor ageing and collection efficiency to ensure liquidity is maintained.
• Review the management of long-term liabilities and any refinancing or repayment plans.
• Watch for any changes in director or shareholder structure that could impact governance or control.
• Ensure timely filing of accounts and confirmation statements to maintain regulatory compliance.