Company Number: 14194075

Analysis Date: 2025-07-29 15:15 UTC

1. Credit Opinion: DECLINE
   Mindset Counselling Limited shows significant financial weakness with negative shareholders’ funds of £3,880 as of June 2024, worsening from -£404 last year. Current liabilities of £3,778 substantially exceed current assets of only £23, indicating severe liquidity constraints and potential difficulty in meeting short-term obligations. The company is in the micro category with minimal asset base and no evidence of profitability or cash generation. The negative equity position reflects accumulated losses, which raises concerns about ongoing viability and ability to service debt. The business is nascent (incorporated 2022) with limited financial history and a single director who also owns all shares, suggesting concentrated control but limited operational scale. Given these factors, credit extension is not advisable without substantial improvement or external support.

2. Financial Strength:
   The balance sheet reveals extreme weakness. Current assets have plummeted from £284 to £23, while current liabilities increased markedly from £563 to £3,778, resulting in a severe working capital deficit (-£3,755). Shareholders’ funds have deteriorated, indicating accumulated losses exceeding capital invested. No fixed assets or long-term investments are reported, limiting collateral value. The company’s micro size limits its ability to absorb financial shocks, and the negative net asset position signals insolvency risk if conditions persist.

3. Cash Flow Assessment:
   The minimal current assets, likely consisting mostly of cash or receivables, contrast sharply with rising current liabilities, implying poor liquidity and potential cash flow distress. Without sufficient working capital, the company may struggle to meet payroll, supplier payments, or other operating costs. No indications exist of external funding or credit lines to bridge this gap. The small scale and single employee further constrain cash generation capacity.

4. Monitoring Points:

• Improvement in working capital position, particularly the ratio of current assets to current liabilities.
• Movement from negative to positive shareholders’ funds through profitability or capital injection.
• Timely payment of trade creditors and avoidance of overdue liabilities.
• Expansion of client base or revenue streams to support sustainable cash flow.
• Any changes in director(s) or ownership that may impact governance and financial management.