UNICOURSE LTD

Risk Rating: MEDIUM
The company shows strong recent profitability and a significant reduction in liabilities, but the balance sheet is heavily concentrated in trade debtors, and the recent resignation of three directors merits closer scrutiny. Liquidity is adequate but fragile, given minimal cash relative to the debtor book.

Key Concerns
1. Extreme Debtor Concentration: As at 31 March 2025, trade debtors of £785,405 represent 96% of total assets. Such concentration creates material collection risk; any impairment or delay in receipts could quickly erode liquidity and require external financing.
2. Rapid Director Churn: Three directors resigned on 18 September 2026 (after the year-end). While this may reflect a planned restructuring, simultaneous departures can signal internal discord or governance issues that warrant investigation.
3. Recent History of Negative Net Assets: In FY2023 the company had negative shareholders’ funds of -£39,484. Though the turnaround to £724,403 by FY2025 is impressive, the prior insolvent position indicates the business was previously reliant on creditor support or favourable terms.

Positive Indicators
- Strong Net Asset Growth: Net assets surged from -£39,384 in FY2023 to £724,403 in FY2025, demonstrating a clear recovery and recent profitability.
- Sharp Liability Reduction: Total liabilities fell from £504,467 (FY2023) to £93,156 (FY2025), and current liabilities dropped by 65% year-on-year, suggesting effective creditor management or debt repayment.
- Compliance Record: Accounts and confirmation statements are up to date, with no overdue filings; the company is meeting all statutory obligations on time.

Due Diligence Notes
- Debtor Ageing & Collectibility: Request a detailed aged debtor schedule and any provision for doubtful debts. Given the sector (education support services), understand the typical payment cycle and any large overdue balances.
- Profit & Loss Breakdown: The latest accounts do not include a profit and loss account; obtain management accounts for FY2025 and FY2026 to assess revenue trends, margin stability, and the source of the recent profit surge.
- Reason for Director Resignations: Clarify with remaining directors (particularly Michael Lopez) the circumstances behind the September 2026 departures. Confirm that no director disqualification or legal proceedings are pending.
- Related Party Transactions: With a single shareholder controlling >75%, review any transactions between the company and its directors or connected parties, especially regarding the large debtor balances.