CLINICAL SKILLS TRAINING LIMITED

Executive Summary

Clinical Skills Training Limited is a young but rapidly growing company with a solid liquidity position and positive net assets. While the balance sheet strength and cash reserves support short-term obligations, the limited trading history and significant debtor balances require ongoing monitoring. Conditional approval is advised, subject to close review of cash flow and trading performance going forward.

CLINICAL SKILLS TRAINING LIMITED - Analysis Report

Company Number: 13802641

Analysis Date: 2025-07-29 19:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Clinical Skills Training Limited is an active private limited company operating in post-graduate higher education, a sector with steady demand. The company shows rapid growth from incorporation in 2021 to reporting net assets of £193k by March 2024. Its balance sheet is healthy with positive net current assets and substantial cash reserves. However, the company is relatively young with limited trading history and no audited accounts, which introduces some uncertainty. Approval is recommended with conditions including close monitoring of cash flow and receivables collection, and review of future trading results to confirm sustainable profitability and debt servicing capability.

2. Financial Strength:

• Net assets stand at £193,234 with shareholders' funds of the same amount, reflecting retained earnings accumulated since formation.
• Current assets total £744,475 comprising £456,829 cash and £287,646 debtors, against current liabilities of £558,247, yielding net current assets of £186,228.
• Tangible fixed assets are minimal (£9,341 net book value), indicating low capital intensity and modest fixed commitments.
• The company’s strong liquidity position and positive working capital suggest financial stability and ability to meet short-term obligations.

3. Cash Flow Assessment:

• Cash at bank of £456,829 provides a solid liquidity buffer to cover immediate liabilities.
• Debtors of £287,646 represent a significant portion of current assets; effective management of receivables will be critical to maintain cash flow.
• Current liabilities of £558,247 include £442,571 in other creditors and £107,548 in taxation and social security, which are sizable but manageable given cash reserves.
• Absence of long-term debt reduces financial risk and interest obligations.
• The company’s small employee base (7 average) and controlled operating costs may help preserve cash flow.

4. Monitoring Points:

• Closely monitor debtor ageing and collection efficiency to ensure receivables do not become impaired.
• Track cash flow statements for any signs of liquidity tightening, especially as the company grows.
• Observe trading results and profitability trends in next accounts to confirm sustainable earnings and reserves growth.
• Review any changes in creditor balances and payment terms to avoid liquidity strain.
• Assess any material changes in business model or market conditions affecting revenue stream stability.