Company Number: 13954952

Analysis Date: 2025-07-29 19:49 UTC

1. Risk Rating: LOW
   Endocover Ltd demonstrates a stable financial position with positive net current assets and net assets increasing year over year since incorporation. There are no overdue filings, no indication of insolvency, and the company is active in a specialized medical practice sector, which generally provides steady demand.

2. Key Concerns:

• Director’s loan account shows a significant negative balance (£28,217), indicating the director owes funds to the company. While not inherently problematic, this should be monitored to ensure appropriate repayment and no adverse cash flow impact.
• Current liabilities have increased notably from £30,933 to £42,650 within one year, mainly other creditors, which should be examined to confirm that obligations are manageable and not indicative of supplier payment delays.
• The company is very young (incorporated in 2022) with limited historical financial data; hence, long-term operational sustainability and growth prospects remain uncertain without additional operational and market data.

3. Positive Indicators:

• Strong liquidity position with cash balances increasing to £130,402 and net current assets improving to £87,752, suggesting the company can meet short-term obligations comfortably.
• Shareholders’ funds and net assets have grown steadily from £64,361 to £88,185, indicating retained earnings accumulation and capital strength.
• No overdue statutory filings or regulatory compliance issues noted; the company adheres to filing deadlines and maintains current director and secretary appointments.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account to ensure proper governance, repayment schedule, and that it does not mask underlying cash flow issues.
• Review the composition of “other creditors” within current liabilities to assess any concentration risk, payment terms, or potential disputes with suppliers or tax authorities.
• Obtain operational performance data including revenue, profitability, and client base development to validate business sustainability beyond balance sheet strength.
• Confirm PSC structure and related party transactions given the significant shareholding by both an individual director and a corporate entity, Cirencester Ltd.