NORTH SENIOR CARE LTD

Executive Summary

NORTH SENIOR CARE LTD exhibits significant financial distress, evidenced by persistent negative net assets and working capital deficits, placing it at high risk of insolvency. While regulatory compliance is maintained and operational scale appears to be growing, the company’s liquidity and solvency issues warrant careful scrutiny. Further due diligence on debt structure, cash flows, and management strategy is essential to assess ongoing viability.

NORTH SENIOR CARE LTD - Analysis Report

Company Number: 12777494

Analysis Date: 2025-07-20 13:21 UTC

1. Risk Rating: HIGH
   Justification: NORTH SENIOR CARE LTD shows persistent negative net assets and shareholders' funds over multiple years, indicating insolvency on a balance sheet basis. The company also has negative net current assets (working capital deficits) in the latest reported year, signaling liquidity stress. These financial indicators point to a high risk of solvency challenges.

2. Key Concerns:

• Negative Net Assets: The company reported net liabilities of £24,331 as of March 2024, persisting over four years, which reflects erosion of equity and potential insolvency.
• Working Capital Deficit: Current liabilities exceed current assets by £10,851 in 2024, suggesting short-term liquidity constraints and potential difficulty meeting obligations as they fall due.
• Growing Long-Term Creditors: Creditors due after one year remain substantial (£62,027), impacting overall financial flexibility and potentially representing significant debt or obligations.

3. Positive Indicators:

• Stable Fixed Assets: The company maintains tangible fixed assets around £52,000, providing some asset backing.
• Increasing Employee Count: Average employees increased from 16 (2023) to 22 (2024), possibly reflecting operational expansion or increased business activity.
• Timely Compliance: No overdue filings for accounts or confirmation statements, indicating adherence to regulatory requirements and governance discipline.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term creditors and whether these represent secured debt or related party loans.
• Assess cash flow statements (not provided) to understand operational cash generation and whether liquidity stress is temporary or chronic.
• Review management plans or restructuring efforts to address persistent losses and negative equity.
• Clarify the absence of profit and loss accounts filing as noted, to better understand profitability trends and operational sustainability.
• Verify director’s background and capacity to manage turnaround given the company’s financial position.