Company Number: 13144251

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: APPROVE
   Fairpark Care Limited demonstrates improving financial health with growing net assets and positive working capital. The company’s balance sheet shows strengthening equity and manageable liabilities. Directors have maintained timely filings with no overdue accounts or returns, indicating good governance. The business operates in a residential care sector, which tends to have steady demand, supporting resilience. The presence of hire purchase liabilities is noted but well covered by current assets and cash balances. Overall, the company appears capable of servicing debt and meeting commercial commitments at this stage.

2. Financial Strength:
   The company’s net assets increased substantially from £87,677 in 2023 to £236,059 in 2024, reflecting retained earnings growth and asset acquisitions. Tangible fixed assets nearly doubled to £211,183, signaling investment in operational capacity. Current assets of £395,776 comfortably cover current liabilities of £121,264, yielding a strong net current asset position of £274,512. Non-current liabilities (hire purchase contracts and other creditors) total £249,636, which is sizable but proportionate to asset size and equity base. Share capital is minimal (£100), typical for a private limited company. The balance sheet portrays a financially stable and growing entity.

3. Cash Flow Assessment:
   Cash at bank increased from £69,817 to £94,200, improving liquidity. Debtors rose significantly to £301,576, suggesting higher revenues or extended credit terms; this warrants monitoring to ensure timely collections. The strong net current assets indicate sufficient working capital to cover short-term obligations. Hire purchase contracts represent structured financing rather than unsecured debt, with liabilities split between current and non-current portions. Overall liquidity and working capital management appear sound, supporting ongoing operational needs and creditor payments.

4. Monitoring Points:

• Debtor collection efficiency: High receivables require close monitoring to avoid cash flow strain.
• Hire purchase obligations: Ensure repayment capacity remains consistent as asset financing matures.
• Profitability data: Income statement details were not filed; future access is important to assess earnings sustainability.
• Sector risks: Changes in residential care regulations or funding could impact revenue stability.
• Growth continuation: Continued asset investment and working capital support should align with revenue growth to maintain balance sheet strength.