LAGERTHA HEALTH ACCESS LTD

Executive Summary

Lagertha Health Access Ltd exhibits a weak financial position with negative net assets and a substantial working capital deficit, signaling inability to meet current liabilities from operational cash flows. The company depends heavily on shareholder loans and support, which raises concerns about its capacity to service external credit. Given the deteriorating liquidity and lack of profitability evidence, credit facilities are not advisable at this stage.

LAGERTHA HEALTH ACCESS LTD - Analysis Report

Company Number: 13572088

Analysis Date: 2025-07-29 13:53 UTC

1. Credit Opinion: DECLINE
   Lagertha Health Access Ltd shows significant financial distress, with consistently negative net assets and shareholders' funds deteriorating from -£69k in 2023 to -£1,536k in 2024. The company's current liabilities substantially exceed current assets, resulting in negative working capital of £-2,068k in 2024, down from £-778k in 2023. The liquidity position is weak, with cash reserves declining sharply from £16,909 to £526. Furthermore, the company depends on an interest-free, on-demand loan from a related party (£1,656), indicating reliance on shareholder support rather than operational cash generation. Although the director confirms ongoing financial backing, this does not guarantee the company's ability to meet external credit obligations. The absence of profitability data and the negative equity position suggest high risk for external lenders.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. Fixed assets are minimal (£532) and declining. Current assets are insufficient to cover current liabilities by a wide margin, causing net current liabilities of £2,068k. The company’s total net liabilities have worsened significantly over the last year. Shareholders’ funds are negative and deteriorating, signaling accumulated losses and erosion of capital. The company's going concern statement depends on continued shareholder support, highlighting a lack of self-sustaining financial strength.

3. Cash Flow Assessment:
   Cash at bank has declined drastically from £16,909 in 2023 to £526 in 2024, indicating significant cash burn or poor cash inflows. The debtor balance has also reduced substantially, which may reflect reduced sales or collection issues. The current liabilities remain high relative to cash and debtors, causing working capital deficits. The company relies on an interest-free loan from a related party to support liquidity. There is no indication of positive operating cash flow, raising concerns about the ability to meet short-term obligations without additional shareholder or external funding.

4. Monitoring Points:

• Liquidity trends, especially cash reserves and working capital ratios, to detect further deterioration.
• Changes in shareholder loan balances and terms, as reliance on related party funding indicates financial fragility.
• Profitability indicators and cash flow from operations in future accounts to assess viability improvements.
• Timely filing of accounts and confirmation statements to monitor compliance and management responsiveness.
• Any changes in management or shareholder support that could impact going concern status.