Company Number: SC768473

Analysis Date: 2025-07-29 17:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Active Therapy (Dumfries) Limited is a newly incorporated private limited company (May 2023) operating in the human health activities sector. It has filed its first set of accounts promptly and is compliant with filing requirements. The modest level of current liabilities relative to cash and net current assets suggests an ability to meet short-term obligations at present. However, the company is very small, with only one employee and limited financial history, which introduces uncertainty about future cash flows and operational sustainability. Approval is recommended on a conditional basis, subject to monitoring of trading performance and liquidity over the next 12 months.

2. Financial Strength:
   The balance sheet as of 31 May 2024 shows total current assets (cash) of £5,566 against current liabilities of £3,611, resulting in positive net current assets of £1,955. Shareholders’ funds stand at £1,955, reflecting initial capital and retained earnings since incorporation. The company holds no fixed assets and has a lean financial structure with minimal gearing risk. The small equity base and limited asset coverage make the business vulnerable to unexpected expenses or downturns. Overall, financial strength is modest but stable for this micro-sized entity.

3. Cash Flow Assessment:
   Cash at bank is £5,566, which covers current liabilities (mainly tax and accrued expenses) by approximately 1.5 times, indicating adequate liquidity in the short term. Given the company’s size and nature, working capital management appears sufficient to support ongoing operations at this stage. However, cash reserves are limited and could be exhausted quickly if turnover does not improve or unexpected costs arise. Absence of detailed profit and loss data restricts deeper cash flow forecasting, so prudent liquidity monitoring is critical.

4. Monitoring Points:

• Monthly cash flow and liquidity position to ensure ongoing ability to meet payables and tax obligations.
• Revenue growth and profitability trends once trading history lengthens beyond the first year.
• Changes in current liabilities composition, particularly tax liabilities, which may indicate emerging issues.
• Director conduct and governance, given sole control by Mr. Richard McConville, to assess management quality and risk.
• Timely filing of future accounts and confirmation statements to maintain compliance and transparency.