ORACLE RADIOLOGY LTD

Executive Summary

Oracle Radiology Ltd is a newly established specialist medical practice showing growth in net assets but still operating with negative working capital and declining cash balances. The company’s creditworthiness is currently conditional on improved liquidity management and debtor collection. Regular monitoring of cash flow and financial performance is essential to mitigate short-term credit risk.

ORACLE RADIOLOGY LTD - Analysis Report

Company Number: SC791190

Analysis Date: 2025-07-20 15:09 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Oracle Radiology Ltd is an active private limited company operating in the specialist medical practice sector since December 2023. While the company shows growth in net assets and some improvement in working capital compared to the prior year, it still reports negative net current assets (£-635 as of March 2025). The director holds full control, and the business appears to be in early stages with only one employee reported. Given the limited trading history and current liquidity constraints, credit facilities can be approved conditionally, with close monitoring of cash flow and debtor collections to ensure debt servicing capacity.

2. Financial Strength:
   The balance sheet shows net assets increased from £356k (2024) to £1,195k (2025), mainly due to retained earnings growth and a reduction in current liabilities from £5,390k to £4,064k. Tangible fixed assets (computer equipment) stand at £2,260k, indicating investment in operational capability. However, the company still operates with net current liabilities, reflecting a working capital deficit that could strain short-term financial flexibility. Shareholders’ funds are modest at £1,195k, reflecting limited equity base but positive net worth.

3. Cash Flow Assessment:
   Cash at bank decreased significantly from £2,028k to £1,085k year-on-year, raising a potential liquidity concern. Debtors increased from £1,200k to £2,344k, which may indicate slower collections or extended credit terms. Current liabilities reduced but remain higher than current assets, resulting in a negative working capital position. The company’s ability to meet short-term obligations depends on accelerating debtor collections and managing payables efficiently. There is no reported overdraft or short-term borrowing disclosed.

4. Monitoring Points:

• Track debtor aging and collections closely to improve liquidity.
• Monitor cash balances monthly to detect any cash flow stress early.
• Observe changes in current liabilities and any new short-term borrowings.
• Review future filed accounts and management accounts for profitability and cash generation trends.
• Watch for any changes in director or ownership structure that could affect governance and financial stewardship.