Company Number: 13799333

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM
   Justification: CareForMe Limited has demonstrated a significant turnaround in net assets from a negative £41,191 in 2022 to a positive £10,456 in 2023, indicating improving solvency. However, current assets have decreased substantially, and the company remains small with limited capital, suggesting ongoing liquidity risk and operational fragility typical for a micro-entity in early years.

2. Key Concerns:

• Liquidity Decline: Current assets dropped from £65,960 in 2022 to £22,597 in 2023, which could signal cash flow constraints despite improved net asset position.
• Limited Capital Base: Share capital is minimal (£119.38), implying limited equity buffer to absorb shocks or fund growth.
• Small Scale and Early Stage: Incorporated in late 2021 with only two employees, the company may face sustainability challenges and dependency on key personnel.

3. Positive Indicators:

• Improved Solvency: Net assets moved from a significant negative position to positive within one year, showing effective management of liabilities.
• No Overdue Filings: Accounts and confirmation statements are up to date, indicating good regulatory compliance and governance discipline.
• Clear Ownership and Control: Two directors with defined shareholdings and voting rights provide transparency and likely strong oversight.

4. Due Diligence Notes:

• Verify the nature and quality of current assets, especially cash versus receivables or inventory, to assess true liquidity.
• Investigate reasons behind the large reduction in current liabilities and whether this reflects repayment, restructuring, or other non-recurring events.
• Review operational business model and revenue sources given the small scale, to evaluate sustainability and growth prospects.
• Confirm absence of contingent liabilities or off-balance sheet obligations that could affect solvency.
• Assess directors’ background and experience in the healthcare and research sectors for operational risk insights.