Company Number: 14653864

Analysis Date: 2025-07-29 17:16 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Feelwell Therapy Limited is a recently incorporated private limited company operating in the human health sector, specifically psychological therapy services. The company shows a modest net asset base of £669 with a negative net working capital position of £-7,273 as of its first financial year ending February 2024. The presence of hire purchase debt (£27,255 total, split into current and non-current liabilities) indicates reliance on financing for fixed assets. While the company is active and compliant with filing deadlines, its early stage financial profile and working capital deficit suggest limited immediate liquidity. Approval for credit facilities should be conditional, subject to monitoring cash flow improvements and repayment capacity as trading progresses.

2. Financial Strength:
   The balance sheet reflects modest fixed assets (£37,823) composed of intangible goodwill (£9,600 net after amortization) and tangible motor vehicles (£28,223 net after depreciation). Current assets are minimal at £5,494 cash with no reported trade debtors or stock. Current liabilities of £12,767 exceed current assets, resulting in net current liabilities of £-7,273. Long-term liabilities are significant (£24,911), all attributable to hire purchase debt. Shareholders’ funds are positive but low (£669), reflecting a small equity injection (£100 share capital plus retained earnings of £569). The company’s gearing ratio is high due to the debt load relative to equity, indicating modest financial resilience at this early stage.

3. Cash Flow Assessment:
   Cash reserves are low at £5,494, insufficient to cover current liabilities of £12,767, highlighting potential short-term liquidity risk. The negative working capital and reliance on hire purchase debt suggest the company is capital intensive and dependent on ongoing cash inflows from operations or refinancing to meet obligations. No detailed profit and loss data is provided, but given the startup phase and amortization/depreciation charges, cash generation may be limited. Close attention to cash flow forecasting and management is essential, with emphasis on collection of receivables (if any) and controlling operating expenses to preserve liquidity.

4. Monitoring Points:

• Liquidity and working capital position: Watch for reduction in current liabilities and growth in current assets to improve net current asset position.
• Debt servicing capability: Monitor cash flow statements and profit margins to ensure hire purchase obligations and other debts can be met timely.
• Revenue growth and profitability: Track turnover and operating results to assess whether the business can generate sustainable earnings to build reserves.
• Director and management performance: Given the single director ownership and control, assess ongoing governance, financial discipline, and strategic decisions impacting credit risk.
• Compliance with filing deadlines and regulatory requirements should continue to be monitored to avoid penalties or reputational risk.