Company Number: 13166033

Analysis Date: 2025-07-29 20:50 UTC

1. Credit Opinion: APPROVE. Lancaster Smile Limited demonstrates solid financial health with positive net assets and working capital. The company is active, has no overdue filings, and is managed by directors with relevant professional backgrounds (dentist and HR manager). Although relatively young (incorporated 2021), the dental practice industry typically generates stable cash flows. There is no indication of financial distress or director misconduct. The secured hire purchase creditors are appropriately matched to assets, indicating prudent risk management.

2. Financial Strength: The balance sheet shows net assets of £394,526 as of 31 March 2024, up slightly from £386,592 the prior year. Fixed assets total £206,184 with depreciation applied, and the company has maintained a strong equity base relative to liabilities. Non-current liabilities (secured hire purchase debt) have decreased from £75,476 to £49,146, improving solvency. Share capital is nominal at £100, consistent with a private limited company. Overall, the financial position is stable with a healthy equity cushion.

3. Cash Flow Assessment: Current assets stand at £395,106, including cash of £153,021 and debtors of £239,085, against current liabilities of £126,782, yielding net current assets of £268,324. Although cash decreased from £224,637 in 2023 to £153,021 in 2024, the increase in trade debtors suggests ongoing revenue generation but a need to monitor collections. The company has a positive liquidity position and sufficient working capital to cover short-term obligations. The secured hire purchase liabilities are manageable and tied to specific assets.

4. Monitoring Points:

   • Debtor collection days: The significant increase in trade and other debtors warrants monitoring to ensure timely collections and avoid cash flow stress.
   • Cash balances: Watch for any continued decline in cash reserves which could signal operational cash demands.
   • Hire purchase liabilities: Track scheduled repayments and asset values securing these debts to maintain coverage.
   • Profitability metrics (not disclosed): Future accounts should be reviewed for consistent profitability and cash generation given the company’s growth phase.
   • Related party transactions: Monitor balances with associated companies for any unusual or increasing exposures.