HEALYCARE LIMITED
Company number 07188670 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Commercial Credit Assessment: HEALYCARE LIMITED
1. Credit Opinion: APPROVE
Reasoning: Healycare Limited presents a strongly favourable credit profile. The company demonstrates exceptional financial health with net assets of £2.55M, a cash position of £1.24M, and minimal leverage (debt-to-equity ratio of 0.31x). The business has shown consistent and accelerating growth over the past decade, with net assets increasing from £152k (2016) to £2.55M (2025). The nature of the business—providing dispersed housing for mental health service users—represents an essential, typically government-funded service with defensive characteristics against economic cycles. Payment capability is excellent, with cash alone covering current liabilities 1.58 times over.
2. Financial Strength Analysis
Balance Sheet Composition (Year Ending 29 March 2025)
| Item | Amount | % of Total Assets |
|---|---|---|
| Tangible Fixed Assets | £342,027 | 10.1% |
| Debtors | £1,808,928 | 53.3% |
| Cash | £1,242,203 | 36.6% |
| Stocks | £1,725 | 0.05% |
| Total Assets | £3,394,883 | 100% |
| Liabilities & Equity | Amount | % |
|---|---|---|
| Current Liabilities | £785,484 | 23.2% |
| Long-term Creditors | £5,265 | 0.2% |
| Provisions | £58,851 | 1.7% |
| Shareholders' Funds | £2,545,283 | 75.0% |
Key Strengths: - Strong equity base: Shareholders' funds represent 75% of total funding, indicating low financial risk - Minimal long-term debt: Only £5,265 in creditors due after one year - Consistent retained earnings growth: Profit retention demonstrates sustainable profitability
Key Concern: - Debtors concentration: £1.81M in debtors represents 53% of total assets. This requires scrutiny regarding collectibility and concentration risk. Given the sector (local authority-funded care), these are likely reliable payers, but the size relative to the balance sheet warrants monitoring.
Leverage Metrics
- Debt-to-Equity: 0.31x — exceptionally low
- Gearing: Negligible — the business is essentially self-funded
- Interest Coverage: Not calculable from available data, but with minimal borrowings, this is unlikely to be a concern
3. Cash Flow Assessment
Liquidity Position
| Metric | 2025 | 2024 | Movement |
|---|---|---|---|
| Current Ratio | 3.89x | 4.98x | Decreased |
| Quick Ratio | 3.89x | 4.97x | Decreased |
| Cash Ratio | 1.58x | 1.73x | Decreased |
| Net Current Assets | £2,267,372 | £1,607,029 | +41.1% |
Interpretation: While liquidity ratios have slightly decreased year-on-year (primarily due to increased current liabilities), absolute liquidity has strengthened significantly. Net current assets grew by over £660k. The current ratio of 3.89x remains exceptionally strong—the company can comfortably meet all short-term obligations.
Working Capital Analysis
- Working capital: £2.27M provides substantial buffer for operational requirements
- Cash generation: Cash grew from £698k (2024) to £1.24M (2025), an increase of £544k (78% growth), demonstrating strong cash conversion
- Stock levels: Negligible at £1,725, which is appropriate for a service business
Cash Flow Trajectory
| Year | Cash | YoY Growth |
|---|---|---|
| 2021 | £143,996 | — |
| 2022 | £214,312 | +48.8% |
| 2023 | £342,067 | +59.6% |
| 2024 | £697,782 | +103.9% |
| 2025 | £1,242,203 | +78.0% |
Cash has grown consistently and substantially, indicating strong operational cash generation rather than one-off items.
4. Monitoring Points
High Priority
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Debtors Quality and Aging: £1.81M in debtors is the largest single asset. Request debtors aging schedule and assess concentration (are there major local authority clients representing disproportionate exposure?). Monitor days sales outstanding trends.
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Provisions: £58,851 in provisions (up from £41,050) should be understood—what liabilities are being provided for, and could they crystallise?
Medium Priority
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Key Person Risk: Single director (Adam Jonathan Healy) creates concentration risk. Understand succession planning and management depth.
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Sector Funding Risk: Mental health housing is typically funded by local authorities. Monitor for changes in commissioning patterns, payment terms, or funding cuts that could impact revenue and debtor collectibility.
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Growth Sustainability: The company has grown rapidly (net assets up 35-69% annually in recent years). Assess whether this growth is being managed sustainably and whether working capital demands are being met without overleveraging.
Lower Priority
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Related Party Transactions: PSC (Bridget Mary Healy) holds 50-75% ownership. Understand any related party transactions or inter-company balances.
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Fixed Assets Composition: Tangible assets of £342k—understand what this comprises (likely property/vehicles given the business nature) and depreciation policy adequacy.
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Filing Compliance: Currently up to date, but continue to monitor timely filing of accounts and confirmation statements.
Supplementary: Financial Trajectory Summary
| Year | Net Assets | YoY Growth |
|---|---|---|
| 2016 | £152,472 | — |
| 2017 | £175,489 | +15.1% |
| 2018 | £367,099 | +109.2% |
| 2019 | £519,711 | +41.6% |
| 2020 | £572,461 | +10.2% |
| 2021 | £598,168 | +4.5% |
| 2022 | £780,210 | +30.4% |
| 2023 | £1,316,910 | +68.8% |
| 2024 | £1,886,855 | +43.3% |
| 2025 | £2,545,283 | +34.9% |
Compound annual growth rate over 10 years: approximately 37%. The business has demonstrated exceptional and consistent value creation.