FILTERED TECHNOLOGIES LIMITED

Executive Summary

Filtered Technologies Limited is a London-based provider of online educational support services operating as a small private company. Backed by institutional shareholders including City & Guilds and Maven Capital, the business has narrowed its operating losses and reduced its cost base, yet it reports negative net assets and depends on continued shareholder support to satisfy going concern requirements. Converting a reported FY2026 revenue pipeline into sustainable profitability while repairing the balance sheet is the immediate strategic priority.

Strategic Assets

• Institutional shareholder base: City & Guilds Of London Institute and Maven Capital Partners UK LLP each hold positions of significant influence. This provides potential financial support, credibility within the vocational education ecosystem, and possible access to corporate and accredited training channels.
• Proprietary digital platform: Capitalised intangible assets of £1.49m (net book value) reflect sustained investment in internally developed training technology. This scalable asset can be monetised across multiple customer segments without proportional cost increases.
• Cost restructuring: Headcount has been reduced from 13 to 8, and current liabilities have fallen from £3.30m to £2.33m. The loss for the year narrowed from £1.38m in FY2024 to £0.62m in FY2025, indicating improving operating leverage.
• Market positioning: The SIC 85600 classification (educational support services) and central London location place the company within the UK professional skills and corporate training market.

Growth Opportunities

• Pipeline conversion in FY2026: The directors state that the company achieved encouraging customer acquisition and developed a strong revenue pipeline during 2026. Converting this pipeline into recurring revenue is the most immediate value-creation lever.
• Institutional channel leverage: The relationship with City & Guilds could be deepened into accredited programmes, apprenticeship support, or enterprise upskilling contracts, expanding the addressable market beyond direct online training.
• Product and technology extension: Continued development of the platform—potentially including AI-based learning capabilities—could support premium pricing, new verticals, and international digital delivery.
• Balance sheet recapitalisation: Existing share premium of £3.91m and demonstrated shareholder willingness to inject capital provide a foundation for a structured recapitalisation that could extinguish negative net assets and fund growth.

Strategic Risks

• Liquidity and going concern: Cash of £43k covers only a small fraction of £2.33m current creditors. The accounts state that the directors rely on shareholder support to continue trading; any reduction in that support would create immediate operational risk.
• Negative equity: Net liabilities of £992k and accumulated losses of £5.13m constrain borrowing capacity and may deter commercial partners or customers concerned about counterparty stability.
• Debtor movement: Trade and other debtors fell from £795k to £267k. While this may reflect improved collections, it could equally signal lower billing activity or provisioning; the company must clarify revenue quality alongside pipeline claims.
• Asset base depreciation: Intangible assets declined from £2.08m to £1.49m as amortisation outpaced new capitalisation. Without reinvestment, the technology platform may lose competitiveness against better-funded online education rivals.
• Competitive intensity: The online training market is fragmented and price-sensitive. Differentiation through accreditation, outcomes, or proprietary technology will be required to sustain margins.