Company Number: 13517526

Analysis Date: 2025-07-20 11:55 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, evidenced by large negative net current assets and shareholders’ funds, with current liabilities substantially exceeding current assets.

2. Key Concerns:

• Severe Working Capital Deficit: The net current liabilities stand at £1.28 million for 2023, worsening from £800k in 2022, indicating an inability to meet short-term obligations from readily available resources.
• Negative Shareholders’ Funds: The equity position is deeply negative (£-1.19 million), reflecting accumulated losses or deficits and potentially eroding creditor confidence.
• High Current Liabilities Relative to Assets: Current liabilities increased by over £450k in one year, outpacing current assets, which declined, signaling growing financial stress and possible cash flow difficulties.

3. Positive Indicators:

• Timely Filing and Compliance: The company is active, with no overdue accounts or confirmation statements, suggesting adequate governance and regulatory compliance.
• Established Ownership and Control: A single parent entity controls 75-100% of shares and voting rights, potentially providing strategic support or access to resources.
• Growth in Workforce: The number of employees more than doubled from 42 to 94 in the latest year, indicating operational expansion which could translate to future revenue growth.

4. Due Diligence Notes:

• Investigate the nature and terms of current liabilities; assess the extent to which these are trade creditors, loans, or other obligations.
• Review cash flow statements and management accounts to understand liquidity management and cash conversion cycle.
• Examine the parent company’s financial health and support mechanisms to evaluate group-level risk mitigation.
• Assess the business model sustainability in the residential nursing care sector, including occupancy rates, contractual arrangements, and regulatory environment.
• Confirm the status and enforceability of the fixed and floating charge held by the lessor over company assets.