CARE DIRECT INTRODUCTIONS LIMITED

Executive Summary

Care Direct Introductions Limited is a small, newly established social care service provider with limited equity and ongoing working capital challenges. While operational and compliant with filing requirements, its negative net current assets and low net worth necessitate careful monitoring of liquidity and cash flow before extending credit. Conditional approval is advised, contingent on improved financial metrics and prudent credit management.

CARE DIRECT INTRODUCTIONS LIMITED - Analysis Report

Company Number: 13291288

Analysis Date: 2025-07-20 13:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Care Direct Introductions Limited is an active micro private limited company operating in the social work sector without accommodation for elderly and disabled persons. The company exhibits very modest net asset growth (£247 in 2023 to £1,199 in 2024) and continues to carry net current liabilities, indicating working capital constraints. While the directors have maintained compliance with filing deadlines and the business remains operational with stable ownership, the weak liquidity position and limited equity cushion present some risk. Conditional approval is recommended subject to regular monitoring of cash flow and liquidity improvements.

2. Financial Strength:
   The balance sheet shows total fixed assets of £8,279 (down from £10,569 a year prior), current assets of £54,463 (up from £35,414), and current liabilities of £61,793 (up from £45,986). The net current liabilities of £7,080 indicate the company’s short-term obligations exceed its current assets, signaling tight working capital. However, the increase in current assets suggests some asset growth. Net assets remain low at £1,199, reflecting minimal equity and limited financial buffer. The company’s capital is nominal (£100 share capital), and shareholder funds correspond closely with net assets.

3. Cash Flow Assessment:
   The net current liabilities and negative working capital position are concerning for liquidity and short-term debt servicing capacity. Given the company’s micro category with only one employee and limited fixed assets, cash flow is likely dependent on turnover and receivables management. The current liabilities have increased significantly, which may pressure cash flow if not matched by incoming receipts. No audit was conducted, and detailed cash flow statements are unavailable, so ongoing cash flow monitoring is essential.

4. Monitoring Points:

• Working capital improvement: Tracking whether net current liabilities reduce or if current assets increase to cover short-term obligations.
• Profitability and retained earnings: Future filings should be reviewed for profit generation and building reserves.
• Director actions and related party transactions: Given two directors control 100% ownership, transparency on transactions will be important.
• Payment behaviour: Monitor payment history on existing or new credit facilities to ensure timely servicing.
• External economic factors: As a social work service provider, changes in public sector funding or regulatory shifts could impact cash flow.