MEYRICK PSYCHOLOGY SERVICES LTD

Executive Summary

Meyrick Psychology Services Ltd is a small, newly established business with modest positive net assets and short-term liquidity. While the company demonstrates basic financial stability, its limited scale and narrow working capital margin necessitate cautious credit exposure and regular financial monitoring. Conditional approval is recommended, with emphasis on liquidity management and operational performance review.

MEYRICK PSYCHOLOGY SERVICES LTD - Analysis Report

Company Number: 14356444

Analysis Date: 2025-07-29 16:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Meyrick Psychology Services Ltd is a micro-entity operating in educational support services, with a very modest asset base and limited liabilities. The company shows positive net current assets and net equity, indicating a basic level of financial stability. However, the small scale and limited financial history, as well as minimal working capital headroom, suggest that credit facilities should be cautiously sized and closely monitored. The business is newly incorporated (2022) with a single director and sole shareholder, which concentrates control but also risk. Approve credit with conditions requiring regular financial updates and prudent limits on exposure.

2. Financial Strength:
   The balance sheet shows net assets of £7,679 as of 30 September 2024, down slightly from £8,586 the prior year. Current assets (£37,295) exceed current liabilities (£29,616) by £7,679, reflecting positive working capital but at a low absolute level. There are no fixed assets reported, indicating the company’s resources are predominantly liquid or receivable-based. Shareholders’ funds entirely mirror net assets, consistent with micro-entity reporting. The financial position is stable but fragile due to low capitalization and limited financial buffer.

3. Cash Flow Assessment:
   Current assets and liabilities suggest the company has sufficient short-term liquidity to meet immediate obligations, with a net current asset position. However, the absolute values are small, and any unexpected outflow or delay in receivables could pressure liquidity. The absence of audit and profit and loss data limits insight into operational cash generation. Given the micro size and single employee, cash flow volatility risk is significant. Cash flow forecasts and monitoring of receivables/payables cycles are recommended.

4. Monitoring Points:

• Maintain close watch on net current assets and liquidity ratios (e.g., current ratio) to ensure the company can meet short-term liabilities.
• Monitor any growth in current liabilities or unexpected increases in payables that could strain working capital.
• Track turnover and profitability once available to assess operational sustainability and debt servicing capability.
• Assess director’s ongoing financial stewardship and any changes in ownership or control that may affect credit risk.
• Require timely filing of accounts and confirmation statements to maintain an up-to-date understanding of financial health.