CAREFORME LIMITED

Executive Summary

CareForMe Limited shows a positive shift in net assets and maintains compliance with filing requirements, reflecting improving financial health and governance. However, the significant decrease in current assets and minimal capital base present ongoing liquidity and operational risks typical of a young, micro-sized company. Further due diligence should focus on asset quality, business sustainability, and underlying cash flow dynamics.

CAREFORME LIMITED - Analysis Report

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.