Company Number: 13034677

Analysis Date: 2025-07-20 12:49 UTC

1. Risk Rating: MEDIUM

Justification: Care Excel 247 Ltd is an active private limited company operating in social work activities without accommodation for the elderly and disabled. The company shows improving liquidity with positive net current assets in the latest financial year but continues to report net liabilities (negative shareholders funds). The directors declare the company as a going concern, and there are no overdue filings or indications of regulatory non-compliance. However, the net liabilities position and reliance on director loans represent moderate solvency and operational risks.

2. Key Concerns:

• Solvency Risk: The company has net liabilities of £6,110 as of the latest accounts (FY 2023), although improved from a significant negative net asset position of £44,531 the previous year. Persistent negative equity is a red flag for solvency.
• Reliance on Director Loans: The company owes £31,392 to directors at the balance sheet date, which is interest-free and repayable on demand. This reliance on related-party funding may indicate cash flow constraints and liquidity dependency.
• Long-Term Debt: There remains a significant amount of bank loans and overdrafts due after more than one year (£53,274 as of 2023). This long-term debt obligation adds pressure on future cash flows and requires prudent management.

3. Positive Indicators:

• Improved Liquidity Position: Net current assets improved to £13,604 in 2023 from a negative £13,198 in 2022, driven by increased cash balances (£62,183) and higher trade debtors.
• Growing Workforce: The employee count more than doubled in the latest year (11 employees vs. 5 previously), suggesting operational growth and increased service capacity.
• Timely Compliance: The company is current with its statutory filings (accounts and confirmation statements), indicating good governance and regulatory compliance.

4. Due Diligence Notes:

• Review the sustainability of director loans and any plans for formalising or repaying these amounts to reduce liquidity risk.
• Examine underlying causes and recovery plans for the historical negative net asset position to assess if losses are being effectively managed.
• Investigate the nature and terms of the long-term bank loans and overdrafts, including covenants and repayment schedules.
• Confirm the reasonableness of the going concern assumption given the financial position and cash flow forecasts.
• Understand the client base and contractual arrangements driving turnover and debtor balances to evaluate operational stability.