Company Number: NI696919

Analysis Date: 2025-07-29 19:39 UTC

1. Risk Rating: HIGH

Justification: Belfast Endo Ltd is a newly incorporated dental practice with limited operating history and financial data. The company has significant net current liabilities (-£81,331) and a very low net asset base (£9,066) relative to total assets (£407,700 fixed assets). The large long-term liabilities (£313,218 bank loans secured on property) further stress solvency. Negative working capital and minimal equity cushion pose a heightened risk of financial distress in meeting obligations.

2. Key Concerns:

• Negative net current assets indicating liquidity constraints; current liabilities exceed current assets by over £81k.
• Heavy reliance on secured long-term debt (£313k), with minimal equity (only £10 share capital plus small reserves), suggesting high leverage and limited financial flexibility.
• The company is newly established (incorporated May 2023) and thus lacks an operating track record to demonstrate sustainable cash flows or profitability.

3. Positive Indicators:

• The company owns substantial fixed assets (£407,700), including goodwill and leasehold property, which could provide collateral value.
• No overdue filings or compliance issues; accounts and confirmation statements are up to date.
• The sole director and 100% shareholder is a qualified dentist, indicating operational expertise aligned with the company's principal activity (SIC 86230 - dental practice).

4. Due Diligence Notes:

• Review the terms and repayment schedule of the secured bank loans to assess covenant compliance and refinancing risks.
• Evaluate cash flow projections and client acquisition plans to verify the company’s ability to generate sufficient operating cash to meet current liabilities and service debt.
• Confirm the valuation and recoverability of goodwill and tangible fixed assets, especially given the short amortisation period and impairment risk.
• Investigate the nature of “other creditors” (£82,372) within current liabilities to understand if any represent related party loans or accrued expenses requiring near-term settlement.
• Assess the impact of the negative working capital on day-to-day operations and whether additional capital injections are planned or needed.