Company Number: 12667571

Analysis Date: 2025-07-20 15:16 UTC

1. Credit Opinion: APPROVE. Living Grace Limited demonstrates a stable financial position with positive net assets and net current assets over the last five years, indicating a consistent ability to meet short-term liabilities. The company operates within the healthcare sector, a typically resilient industry, and is managed by a sole director with full control, which suggests clear decision-making authority. No overdue filings or signs of financial distress are evident. Given its micro-entity status and modest scale, the risk profile is low, and credit exposure should be manageable.

2. Financial Strength: The company’s balance sheet shows solid net assets of £16,363 as of June 2024, up slightly from £16,115 the previous year, reflecting modest growth. Current assets consistently exceed current liabilities by a comfortable margin, yielding net current assets of £16,363 in 2024. Fixed assets are minimal (£550 in 2023 and prior years, none reported in 2024), consistent with a service-based healthcare operation. Shareholders' funds have improved gradually from £4,734 in 2020 to £16,363 in 2024, indicating retained earnings or equity injections supporting the business.

3. Cash Flow Assessment: Current assets primarily consist of cash and short-term receivables totaling £17,071 in 2024, while current liabilities are very low at £708, implying strong liquidity and working capital management. The positive net current assets position suggests the company can comfortably cover short-term obligations without liquidity strain. The small employee base (average 2 employees) also keeps overheads low, supporting operational cash flow stability.

4. Monitoring Points:

• Continued maintenance of positive net current assets given the company's small scale.
• Monitor cash flow closely if expanding operations or increasing liabilities.
• Watch for any changes in director control or governance that could impact financial stewardship.
• Keep an eye on industry conditions in healthcare that might affect revenue streams.
• Ensure timely filing of accounts and returns to avoid compliance risks.