HOLYWOOD HEALTHCARE LTD

Executive Summary

Holywood Healthcare Ltd exhibits a moderate risk profile primarily due to deteriorating liquidity and a shrinking equity base despite stable asset investment. While compliance and governance appear sound, the significant creditor obligations and negative working capital warrant close scrutiny. Further detailed financial review and monitoring of ongoing cash flows are advisable to assess the company’s ability to meet its obligations and sustain operations.

HOLYWOOD HEALTHCARE LTD - Analysis Report

Company Number: NI683119

Analysis Date: 2025-07-20 17:46 UTC

1. Risk Rating: MEDIUM
   The company shows a significant deterioration in net current assets from a positive £26,450 in 2022 to a negative £17,521 in 2023, indicating liquidity pressures. Additionally, net assets have declined sharply from £38,933 to £13,018 despite stable fixed assets. These factors suggest some solvency and liquidity risks that require monitoring.

2. Key Concerns:

• Negative Working Capital: Current liabilities exceed current assets by £17,521, which may impair the company’s ability to meet short-term obligations without refinancing or additional capital.
• High Long-Term Creditors: Creditors falling due after more than one year increased to £334,552, representing a significant financial obligation relative to net assets of £13,018, raising solvency concerns if cash flows falter.
• Declining Equity Base: Shareholders’ funds have dropped markedly from £38,933 to £13,018, reducing the company’s financial buffer and increasing reliance on external financing or operational cash generation.

3. Positive Indicators:

• Stable Fixed Assets: Fixed assets increased modestly, implying ongoing investment in tangible resources which may support operational capacity and revenue generation.
• No Overdue Filings: The company is current with both statutory accounts and confirmation statement filings, indicating compliance discipline and good governance practices.
• Experienced Management: Directors include individuals with accounting and management experience, potentially supporting effective financial oversight.

4. Due Diligence Notes:

• Investigate the nature and terms of the long-term creditors (£334,552) to assess repayment schedules, interest obligations, and refinancing risks.
• Review management accounts and cash flow forecasts post-October 2023 to evaluate whether liquidity pressures have been addressed or worsened.
• Examine the causes for the decline in current assets and shareholders’ funds between 2022 and 2023, including any unusual expenses, asset impairments, or losses.
• Confirm whether the company’s business model and revenue streams in the dental practice sector are stable and sufficient to service debts and restore financial strength.