LUMINA SMILES LTD

Executive Summary

Lumina Smiles Ltd is a newly established dental health services company demonstrating initial profitability and adequate liquidity. The absence of debt and professional management underpin a low credit risk profile, supporting credit facility approval with routine monitoring. Key focus areas include cash flow management and maintaining compliance as the business grows.

LUMINA SMILES LTD - Analysis Report

Company Number: 15237996

Analysis Date: 2025-07-20 17:59 UTC

1. Credit Opinion: APPROVE (with standard monitoring)
   Lumina Smiles Ltd is a newly incorporated private limited company (October 2023) operating in the health sector (SIC 86900). The company exhibits a positive initial financial performance with a reported profit and no overdue filings, indicating proper financial stewardship. The director, who is also the sole significant controller, has professional expertise (dentist), which supports operational credibility. Although early in its lifecycle, the company shows adequate liquidity and net assets, justifying credit approval with standard monitoring for growth and cash flow trends.

2. Financial Strength:
   The balance sheet at 31 October 2024 shows net assets of £3,604 and positive net current assets of £2,740. Fixed assets are minimal (£864), reflecting a low capital intensity typical for service businesses. Current liabilities of £22,975 mainly consist of taxation and social security obligations (£22,941), which suggests the company is up to date on operational expenses but must carefully manage cash flows to meet these liabilities. Shareholders' funds correspond to net assets, indicating no external long-term debt, reducing financial risk.

3. Cash Flow Assessment:
   Cash at bank of £12,319 and trade debtors of £13,396 provide a reasonable liquidity buffer against current liabilities. The net current asset position is positive but modest, suggesting cash flow management will be crucial as the company expands. The company generated a profit of £78,877 during the period, which improves its ability to service working capital needs. However, dividends of £75,274 paid out significantly reduce retained earnings and available cash, which should be monitored to ensure sustainable liquidity.

4. Monitoring Points:

• Maintain strong liquidity and ensure timely settlement of tax and social security liabilities.
• Monitor working capital trends as the business scales to prevent cash shortfalls.
• Track profitability and dividend policy to avoid erosion of reserves and cash.
• Observe any changes in director control or additional borrowing that may affect credit risk.
• Watch for consistent filing of accounts and confirmation statements to ensure compliance.