Company Number: SC723408

Analysis Date: 2025-07-20 18:05 UTC

1. Risk Rating: LOW
   HEARTDOC LTD demonstrates solid financial health for a company incorporated in 2022. The company maintains positive net assets and net current assets, with no overdue filings or sign of insolvency. The liquidity position is strong with cash representing a significant portion of current assets.

2. Key Concerns:

• Increasing current liabilities: Current liabilities rose sharply from £14,800 in 2023 to £51,828 in 2024, primarily tax and social security related, which could pressure short-term liquidity if not managed carefully.
• Provisions for liabilities remain notable at £8,403, indicating potential contingent liabilities or obligations that could impact future cash flows.
• Small scale and limited operational history: With only two employees and minimal share capital, the company’s operational and financial resilience in a competitive healthcare sector is unproven.

3. Positive Indicators:

• Strong liquidity: Cash balance increased to £70,362 in 2024 from £47,695 in 2023, supporting working capital needs.
• Positive net assets: The company’s net assets grew from £69,045 to £119,899, reflecting retained earnings and investment growth.
• Up-to-date statutory compliance: All accounts and confirmation statements are timely filed with no overdue returns, reducing regulatory risk.

4. Due Diligence Notes:

• Clarify nature and timing of the increased current liabilities, especially tax and social security amounts, to assess cash flow impact and any risk of penalties.
• Review details of the fixed asset investments (£66,222) to understand valuation approach and liquidity of these assets.
• Investigate the provisions for liabilities to determine the underlying risks and potential financial impact.
• Understand business model sustainability given limited employee base and niche healthcare SIC code 86900, including client concentration and revenue visibility.
• Confirm any director or related party financial transactions, including the small directors’ loan noted, to assess governance and financial controls.