Company Number: 14336555

Analysis Date: 2025-07-29 17:14 UTC

1. Credit Opinion: APPROVE
   Blackdown Hills Creative Therapy Ltd demonstrates a stable micro-entity profile with positive net assets and improving working capital. The company is active, up to date with filings, and has no adverse status such as liquidation or administration. While the scale is small and limited to one employee (the director), the financials show steady growth in net current assets and shareholders' funds, indicating prudent financial management. Given the low complexity and low credit exposure likely requested, the company appears capable of servicing modest credit facilities.

2. Financial Strength:
   The latest accounts (year ending 30 September 2024) reveal net current assets of £2,165, an increase from £650 in the prior year. Total net assets and shareholders' funds also increased from £650 to £2,165 over the same period. The balance sheet is straightforward, with no long-term liabilities or fixed assets reported. This modest but positive equity position suggests limited leverage and a conservative financial structure. The micro-entity classification confirms the company's small scale but no adverse financial indicators.

3. Cash Flow Assessment:
   Current assets (largely cash and receivables) of £3,696 comfortably cover current liabilities of £1,531, producing a net working capital of £2,165. This liquidity buffer, while small in absolute terms, indicates the company can meet short-term obligations. The increase in current assets year-over-year is a positive sign for cash flow management, although the absolute scale means credit limits should be conservative and matched to the business size.

4. Monitoring Points:

• Continue to monitor net current assets and liquidity to ensure ongoing ability to service debt.
• Watch for increases in liabilities or any long-term borrowing that could strain the balance sheet.
• Track revenue and profitability trends once available to assess business growth trajectory.
• Review director and management conduct for any changes that could impact governance or credit risk.
• Confirm timely filing of accounts and confirmation statements to avoid compliance penalties.