NSK CARE LTD

Executive Summary

NSK Care Ltd displays strong asset backing with substantial fixed assets and minimal liabilities but shows no operational activity or cash flow data, limiting visibility on repayment capabilities. Credit approval is recommended only with conditions requiring further financial information and cash flow validation. Ongoing monitoring of liquidity and income streams is essential to mitigate credit risk.

NSK CARE LTD - Analysis Report

Company Number: 12391125

Analysis Date: 2025-07-20 18:44 UTC

1. Credit Opinion: APPROVE with conditions. NSK Care Ltd shows a very strong balance sheet dominated by fixed assets of £965k and minimal current liabilities (£4.6k), leading to a robust net asset position of £960.7k. However, the company is a micro-entity with no turnover or profit data disclosed, and it employs only one person (the director). The lack of current assets and operational activity raises concerns about cash flow generation and debt servicing capacity. Credit approval should be conditional on further information about the company's income streams, cash flow projections, and confirmation of ongoing business activity.

2. Financial Strength: The company's financial strength is anchored by substantial fixed assets relative to its size, which provides collateral value. Shareholders' funds equal net assets, indicating no external debt and a clean capital structure. The company has maintained stable financials for several years with no change in asset or liability figures, suggesting no recent growth or operational expansion. The absence of current assets aside from negligible current liabilities implies minimal working capital needs but also limited liquidity.

3. Cash Flow Assessment: Cash flow assessment is constrained by the lack of reported current assets such as cash or receivables. The micro-entity accounts do not disclose turnover or profit/loss figures, and the single employee (director) status suggests limited operational activity. The company’s ability to service debt or meet short-term obligations depends heavily on the liquidity of its fixed assets or capital injections from shareholders. Without clear evidence of cash inflows, liquidity risk is elevated.

4. Monitoring Points:

   • Verify revenue generation and cash inflows to confirm the company’s ability to meet financial obligations.
   • Monitor any changes in current assets and liabilities to assess liquidity changes.
   • Watch for updates in filings that could reveal income or operating results.
   • Keep track of any director or shareholder changes or related party transactions affecting financial stability.
   • Review any external financing arrangements or asset disposals that could impact credit risk.