OCEAN VILLAGE DENTAL CLINIC LTD

Executive Summary

Ocean Village Dental Clinic Ltd presents a weak financial profile with negative equity and working capital deficits, indicating a poor ability to service debts. The declining asset base combined with high long-term liabilities raises significant credit risk. Without evidence of operational turnaround or financial support, credit facilities are not recommended at this time.

OCEAN VILLAGE DENTAL CLINIC LTD - Analysis Report

Company Number: 13225804

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: DECLINE

Ocean Village Dental Clinic Ltd exhibits significant financial distress with persistent net liabilities and negative shareholders’ funds over the past three years. Despite being an active trading dental practice, its balance sheet shows a worsening deficit from -£45,628 in 2023 to -£56,382 in 2024, indicating accumulated losses and erosion of equity. The company’s current liabilities exceed current assets, resulting in negative net current assets (working capital deficit), which raises concerns about its ability to meet short-term obligations. The large creditors due after more than one year (£157k) compared to total assets suggests over-leverage and insufficient asset coverage. Without evidence of profitability or cash flow improvements, extending credit facilities is high risk.

2. Financial Strength:

• Fixed assets declined from £126,885 in 2023 to £102,303 in 2024, possibly due to disposals or depreciation.
• Current assets decreased from £9,282 to £6,772, while current liabilities reduced slightly from £51,643 to £45,377, yet still creating a working capital deficit of £1,526.
• Long-term creditors remain substantial (£157,159), outweighing total assets (fixed + current) of £109,075.
• Shareholders’ funds are negative and deteriorating, reflecting ongoing losses.
• The company employs 4 people, up from 2, indicating some operational expansion but not translating into improved financial health.

3. Cash Flow Assessment:

• Negative net current assets indicate working capital strain; current liabilities exceed current assets.
• Prepayments and accrued income (~£37k) somewhat mitigate liquidity concerns but are not cash equivalents.
• Lack of profit and loss data limits direct cash flow analysis; however, persistent net liabilities and declining assets signal poor cash generation.
• No audit or detailed P&L provided, restricting visibility on operational cash flows.
• The small share capital (£100) provides minimal equity buffer.

4. Monitoring Points:

• Quarterly review of cash flow statements and debtor collections to assess liquidity improvements.
• Monitor changes in creditors structure and whether long-term debts are being restructured or paid down.
• Watch for filing of next annual accounts for any reversal in losses or equity restoration.
• Track management initiatives on cost control and revenue growth to improve profitability.
• Review any additional capital injections or shareholder support to strengthen financial position.