GEM COMPLIANCE TRAINING

We offer many nationally recognised qualifications mainly in the Health and Safety sector offering regulated qualifications such as First Aid, Health and Safety, Fire Safety, and Food Safety to name a few. We have qualified around 20,000 attendees and work with about 3000 businesses. All the qualifications we offer help businesses and individuals stay compliant at work; many are mandatory requirements in the workplace.

Having started the business from scratch in 2015 with just myself and a trainer, GEM has grown to a business that is set to achieve £500k turnover this financial year with a team of 7 members, working closely with 15 freelance trainers. We are a value-driven business. Customer satisfaction is at the forefront of what we do, now with a 4.9-star Google rating. We are committed to providing our partners and participants with a service that is of the highest quality. We understand the importance and urgency of training, so have worked hard to provide a service that operates with ease. Creating very few barriers between our participants and their certificates.

I am proud to say that we won a New Business of the Year Award at the Keighley & Airedale Business Awards in 2016 and recently returned to sponsor the same award at the Keighley & Airedale Business Awards in June 2022. The company has continued to move from strength to strength; we've faced challenges head-on, finding solutions in difficult times. We survived the challenges of COVID back in 2020. Creating a blended learning approach to our training, we went into the film studios to record the knowledge elements of our training which helped reduce classroom time by as much as half. As we continue to grow we are seeking funds for working capital and refinancing.

Credit commentary:
The directors are providing personal guarantees, this means that if the business fails, the directors become personally liable for the loan. The directors are homeowners, however this does not ensure there are sufficient assets should the loan need to be recovered. There have been no CCJs for the business or directors. The Equifax score and grade, on which we base our assessment of risk, are based on the 2021 accounts. We have performed our assessment on recent financial information, including 2022 draft and management accounts, which were not available to Equifax. As of March 2022, the draft accounts show that the year to date profit before tax was £38,939 and net equity was £11,741. As of November 2022, the management accounts show that the eight month profit before tax was £46,187 and net equity was £38,596. We have calculated the company to have negative TNW based on the November 2022 eight-month management accounts. The tangible net worth calculations takes net equity (shareholders' funds) and subtracts intangible assets, directors’ loans (current assets) and intercompany loans (current assets). Therefore, as this company had intangible assets of £56,535 and an intercompany loan of £10,433, the TNW was calculated to be £(28,373) as at November 2022. The bank statements demonstrate reasonable affordability and the accounts remain well in credit.

Inflation risk:
The business advised that they are not affected by higher input costs. As the majority of lending to the business is at a fixed rate, they will not be immediately affected by interest rate increases. The directors do not expect to draw money from the business as all capital is vital for the growth of the business. GEM Compliance Training advised that they are less likely to be impacted by inflationary pressures as there will only be a slight increase in supplier costs.