Company Number: 14540512

Analysis Date: 2025-07-20 13:49 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Bramhall Osteopathic Practice Limited is a micro-entity with limited financial history, having been incorporated recently in December 2022. The company shows net assets growth from £13,749 in 2023 to £36,878 in 2024, which is positive, but the current year shows net current liabilities of £6,312, indicating a short-term liquidity strain. The company’s ability to service debt is conditional on improving working capital management and maintaining steady cash inflows. Given the business is a specialist medical practice with a sole director/shareholder controlling 75-100%, governance appears straightforward but somewhat concentrated. Overall, credit can be extended with conditions on regular monitoring and assurance of cash flow stability.

2. Financial Strength:
   The balance sheet shows fixed assets around £45,000, consistent over two years, and an increase in shareholders' funds, suggesting retained earnings or equity injections. However, current assets (£12,475) are below current liabilities (£18,787) in 2024, producing negative net current assets of £6,312. This indicates potential short-term liquidity risks. The company’s net assets remain positive at £36,878, supporting a modest capital base. The increase in net assets from 2023 to 2024 is encouraging, but the decline in current assets and increase in current liabilities year-on-year warrant caution.

3. Cash Flow Assessment:
   Current liabilities exceed current assets, highlighting potential working capital pressure. The absence of a P&L account limits insight into profitability and operational cash generation. The company is likely dependent on timely collections and managing payables carefully to avoid cash flow disruptions. With only 8 employees and a micro-entity classification, operational scale is small, which may help control overheads. Close attention is needed on debtor days, creditor terms, and cash reserves to ensure liquidity is sufficient to meet short-term obligations.

4. Monitoring Points:

• Working capital trends: Monitor current assets vs. current liabilities to avoid liquidity crunches.
• Cash flow statements or management accounts: Request interim financials to assess ongoing cash generation.
• Debt servicing capacity: Verify any new credit facilities are supported by stable cash flows.
• Director/shareholder financial support: Watch for any related party transactions or equity injections, as the business is closely held.
• Profitability metrics when available: To assess whether the business model sustains earnings for debt repayment.