Company Number: 13118662

Analysis Date: 2025-07-29 20:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Menopause Movement Ltd shows modest but improving financial health with positive net current assets and net assets increasing from £539 in 2024 to £2,294 in 2025. The company is small, in the education sector, and has no audit requirement, which limits transparency. While the company can currently meet short-term liabilities, its overall scale and limited equity buffer suggest moderate risk. Approval is recommended with conditions including continued monitoring of liquidity and profitability, and review of director loans as these represent a significant portion of current assets.

2. Financial Strength:
   The company’s net assets have grown over the last two years, moving from £539 in 2024 to £2,294 in 2025, indicating improving equity. Share capital remains minimal at £6, with retained profits driving the increase in shareholders’ funds. The balance sheet shows current assets of £18,646 against current liabilities of £16,352, yielding positive working capital of £2,294. The company does not hold fixed assets, relying on current assets primarily cash and director loans. The capital structure is very thin, with no long-term debt reported. This small equity base limits financial resilience in adverse conditions.

3. Cash Flow Assessment:
   Cash balances have increased from £9,713 to £11,437, supporting liquidity. However, a large proportion of current assets (£7,209) comprises director loans, which, although repayable on demand and unsecured, may not be readily liquidated if required. Current liabilities have nearly doubled from £9,174 to £16,352, primarily driven by tax and social security liabilities (£15,334 in 2025). The company’s ability to meet obligations depends heavily on timely cash inflows and the collectability of director loans. Working capital is positive but low, suggesting limited buffer for cash flow volatility.

4. Monitoring Points:

• Track turnover and profitability trends to ensure continued growth and ability to generate internal funds.
• Monitor timely repayment or conversion of director loans to cash to maintain liquidity.
• Watch the increase in tax liabilities and ensure these are being managed to avoid enforcement action.
• Review cash flow forecasts regularly given limited equity and working capital to withstand short-term financial stress.
• Monitor management actions to improve capital base or reduce reliance on director advances.