Company Number: 14674115

Analysis Date: 2025-07-29 14:43 UTC

1. Credit Opinion: DECLINE
   Buxton Hearing Centre Ltd is a very recently incorporated micro-entity with less than one full year of trading. The latest financials show net current liabilities of £33,276 and negative net assets of £4,150, indicating weak financial health and insufficient working capital. The company is majority-controlled (75-100%) by a corporate entity, Trinity Group NW Ltd, which may provide some support, but there is no evidence yet of profitability or positive cash flow. Given the early stage, negative net assets, and working capital deficit, the company currently lacks the financial strength to service debt obligations reliably. Approval would require significant additional security or guarantees and close monitoring.

2. Financial Strength:
   The balance sheet reflects a modest fixed asset base (£29,126) but very limited current assets (£18,551) against substantial current liabilities (£52,868). The resulting net current liability position (-£33,276) signals liquidity stress. Shareholders’ funds are negative (-£4,150), meaning accumulated losses or initial funding shortfall exceed equity injections. The company’s small scale (micro-entity) and short trading history limit confidence in its financial resilience.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by a wide margin, indicating potential difficulty meeting short-term obligations without additional funding. There is no P&L data provided, but the negative net assets and working capital deficit suggest cash flow is currently negative or insufficient. The company employs 7 staff, which may add to fixed overheads before generating sustainable income. Liquidity and working capital position are weak, raising concerns about ongoing operational cash flow.

4. Monitoring Points:

• Quarterly cash flow and working capital updates to assess improvement or deterioration.
• Profitability trends in subsequent financial periods, especially gross margin on audiology services.
• Any additional funding or capital injections from Trinity Group NW Ltd or other investors.
• Receivables and payables aging to detect collection or payment delays.
• Directors’ conduct and governance given the key roles held by audiologists and corporate director.