ELITE VITALITY CLINIC LTD

Executive Summary

ELITE VITALITY CLINIC LTD shows clear signs of financial distress, with worsening negative net assets and current liabilities exceeding current assets. While the company remains compliant with filing requirements and is managed by a director with relevant professional background, significant liquidity and solvency risks are present. Further investigation into cash flow and business viability is recommended before considering investment.

ELITE VITALITY CLINIC LTD - Analysis Report

Company Number: 12482091

Analysis Date: 2025-07-29 12:59 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency issues as evidenced by persistent negative net current assets and net liabilities over the past two years. The deterioration from -£2,369 in 2021 to -£3,925 in 2022 indicates increasing financial distress, raising concerns about its ability to meet short-term obligations.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets substantially, suggesting liquidity problems and potential cash flow constraints.
• Declining Financial Position: Net assets have moved further into negative territory, indicating accumulated losses or increased liabilities without corresponding asset growth.
• Single Director and Shareholder Control: With one director and sole owner controlling 100% of shares and voting rights, there is a concentration risk and limited governance oversight.

3. Positive Indicators:

• Compliance with Filing Requirements: Accounts and confirmation statements are up to date with no overdue filings, demonstrating regulatory compliance.
• Micro-entity Status: The company benefits from simplified reporting requirements which reduces administrative burden and costs.
• Experience of Director: The director is a registered nurse, which aligns with the business industry and may suggest operational knowledge in the health/beauty sector.

4. Due Diligence Notes:

• Review Detailed Financial Statements: Investigate the nature of liabilities causing negative working capital and whether these are trade payables, loans, or other debts.
• Assess Cash Flow Trends: Obtain recent management accounts or cash flow forecasts to evaluate liquidity beyond year-end snapshots.
• Understand Business Model and Revenue Streams: Clarify how the clinic generates income and whether profitability is achievable or sustainable given current financial pressures.
• Director’s Future Plans and Support: Ascertain if there are plans for capital injection, restructuring, or other remedial actions to restore financial health.
• Check for Undisclosed Risks: Verify absence of legal claims, tax arrears, or regulatory penalties that could exacerbate financial strain.