Company Number: 14734492

Analysis Date: 2025-07-20 12:50 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Johnston Dental Ltd is a newly incorporated private limited company with its first financial year completed. The company shows modest net assets (£30,156) and positive working capital (£30,156), indicating a reasonable liquidity position at this early stage. However, its size (micro entity) and short trading history limit the ability to fully assess long-term repayment capacity. The director’s loan balance (£12,306) to the company, repayable on demand, warrants monitoring. Approval is conditional on continued positive trading performance, timely repayment of director advances, and regular financial updates.

2. Financial Strength:
   The balance sheet indicates a healthy net asset position for a micro company, with total assets less current liabilities at £30,156. The company holds £31,951 in cash, which exceeds current liabilities of £18,258, supporting good short-term solvency. The absence of fixed assets is typical for a service-based startup. Equity is composed mostly of retained earnings (£30,056), showing some initial profitability or capital injection beyond the £100 share capital. Overall, financial strength is acceptable for the company’s size and age.

3. Cash Flow Assessment:
   Cash at bank of £31,951 exceeds current liabilities, reflecting adequate liquidity and a positive working capital of £30,156. Debtors balance (£16,463) is not excessive relative to cash but should be monitored for collectability. The director’s loan of £12,306, while currently outstanding, is repayable on demand and incurs interest, which provides some assurance of timely repayment. The company reports zero employees, which may limit payroll outflows but also suggests limited operational scale currently. Cash flow appears sufficient to meet short-term obligations.

4. Monitoring Points:

• Track ongoing cash flow and debtor collections to ensure liquidity remains strong.
• Monitor repayment progress of the director’s loan to avoid liquidity strain.
• Review future annual accounts for evidence of revenue growth and profitability.
• Watch for any increases in current liabilities, especially tax and social security obligations.
• Assess management’s ability to scale operations and maintain financial controls over time.