Company Number: 13196191

Analysis Date: 2025-07-29 16:58 UTC

1. Risk Rating: LOW
   Care Therapy Limited demonstrates a stable financial position with positive net current assets, consistent cash balances, and no overdue filings. The company’s financials indicate prudent management of liabilities relative to assets, suggesting low immediate solvency or liquidity risk.

2. Key Concerns:

• Minimal Share Capital and Equity Base: With only £1 share capital and shareholders’ funds around £3,155, the equity base is very small, potentially limiting financial flexibility.
• No Employees Reported: The company reported zero employees, raising questions about operational capacity and sustainability if it relies heavily on directors or contractors.
• Limited Financial Disclosure: The absence of an income statement and profit/loss details restricts insight into profitability, revenue streams, and operational performance.

3. Positive Indicators:

• Consistent Positive Net Current Assets: The company maintains net current assets above £2,800 over recent years, indicating an ability to meet short-term obligations.
• Cash Position: Cash balances are stable and nearly equal to current assets, suggesting good liquidity.
• Compliance with Filings: Accounts and confirmation statements are up to date with no overdue filings, reflecting good regulatory compliance.
• Active Website and Industry Classification: The company is operational in a well-defined sector (child day-care and human health activities) with an active website, indicating ongoing business activity.

4. Due Diligence Notes:

• Investigate Revenue and Profitability: Obtain detailed income statements and cash flow reports to assess business viability and operational performance.
• Clarify Employment Model: Understand how the company delivers services without reported employees—whether through subcontractors, directors, or outsourcing.
• Review Director and PSC Roles: Clarify the shareholding and voting control overlap between the two directors; the PSC data suggests both own 75-100% shares, which may require further explanation.
• Confirm Business Activity Scope: Verify actual trading activities, client base, and contracts to ensure sustainable operations given the small financial scale.
• Examine Creditors Composition: Analyze the nature of “other creditors” (~£1,221) to assess any contingent liabilities or payment terms impacting liquidity.