Company Number: 13065735

Analysis Date: 2025-07-29 18:48 UTC

1. Risk Rating: MEDIUM
   The company shows solid net asset growth but current liabilities exceed current assets, indicating potential short-term liquidity pressure. The small scale (micro-entity) and single director control add concentration risk.

2. Key Concerns:

• Liquidity mismatch: Current liabilities (£726,744) exceed current assets (£639,817) as of 2023, with net current liabilities of £86,927, indicating potential cash flow constraints.
• Single director and PSC control: Mr. Rhishi Patel holds 75-100% shares and voting rights, concentrating control and risk in one individual.
• Limited scale and staffing: Only one employee reported, which may limit operational resilience and scalability.

3. Positive Indicators:

• Strong net asset base: Net assets have increased from £140,568 (2020) to £603,013 (2023), reflecting asset growth and retained earnings buildup.
• Fixed assets stability: Fixed assets have remained stable at £689,940 since 2021, indicating investment in tangible resources likely essential for dental practice operations.
• Compliance: No overdue filings for accounts or confirmation statements, demonstrating regulatory compliance.

4. Due Diligence Notes:

• Investigate working capital management: Understand the nature of current liabilities and whether they are short-term trade payables, loans, or other obligations. Assess cash flow forecasts.
• Review director’s role and governance: With one director holding full control, assess any governance policies, potential conflicts of interest, and succession plans.
• Confirm revenue and profitability trends: As financial statements are limited to balance sheet figures, request profit and loss data to evaluate operational viability and earnings sustainability.