Company Number: 14600861

Analysis Date: 2025-07-29 12:34 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Andrew Legg Limited is a newly incorporated medical specialist practice with limited financial history. The company shows a positive net current asset position and modest net assets, indicating some initial financial stability. However, the business is in its infancy, with low absolute asset and equity values (£569 net assets), and relies on director advances for funding. Credit approval is conditional on monitoring trading progress and cash flow improvement over the next 12 months, with a recommendation for short-term facilities only until trading and profitability become evident.

2. Financial Strength:
   The balance sheet reveals current assets of £24,959 against current liabilities of £22,950, resulting in net current assets (working capital) of £2,009. Total net assets stand at £569, reflecting minimal retained earnings or capital reserves. The micro-entity classification and small scale of operations limit the scope for financial resilience. The company has no fixed assets reported and depends on short-term assets and director funding (£7,766 advances from a director). The low equity base limits the ability to absorb financial shocks.

3. Cash Flow Assessment:
   Current assets mainly consist of cash or equivalents and possibly receivables, which slightly exceed short-term liabilities, indicating marginal liquidity. The working capital cushion is very thin (£2,009), which could be strained under increased operational demands or delayed receivables. The director advances suggest external funding is currently required to support operations. Cash flow management will be critical to ensure timely payment of creditors and ongoing operational costs. No significant provisions for repayments or loan servicing are visible yet due to the company's young age.

4. Monitoring Points:

• Review subsequent trading results and profitability trends to assess growth trajectory.
• Monitor liquidity ratios and working capital fluctuations quarterly to detect potential cash flow stress.
• Track director advances and external funding reliance to evaluate financial independence.
• Keep an eye on credit terms extended to and from the company, ensuring no buildup of overdue payables or receivables.
• Watch for any changes in company status or director conduct, as both directors have significant control and are key to the business continuity.