Company Number: 14125008

Analysis Date: 2025-07-20 15:08 UTC

1. Credit Opinion:
   CONDITIONAL APPROVAL. Psych VA Ltd is a micro private limited company with very limited financial history, having been incorporated in May 2022. The company shows a small positive net asset position (£625 at 31 May 2024) but negative net current assets (-£136), indicating some short-term liquidity pressure. The director is the sole significant controller, which concentrates governance risk but also suggests committed management. Given the small scale, early stage of operations, and marginal working capital deficits, credit facilities could be considered but should be closely monitored and possibly limited in size and tenor.

2. Financial Strength:
   The balance sheet reveals a low level of fixed assets (£761) and current assets (£4,527) offset by current liabilities of £4,663. The company improved its net asset position from £276 in 2023 to £625 in 2024, showing modest capital growth. However, persistent negative net current assets indicate tight liquidity and potential short-term funding needs. Shareholders funds remain low, reflecting the company’s micro size and early development phase. No significant debt or long-term liabilities are reported.

3. Cash Flow Assessment:
   Current liabilities slightly exceed current assets, resulting in negative working capital (-£136). This suggests the company may face challenges covering short-term obligations from operating cash flow alone. The company has two employees on average and minimal fixed assets, which can help maintain a flexible cost base. Director advances reduced during the year from £2,167 to £899, indicating some internal financing support. Overall, liquidity is fragile, and cash flow management will be critical.

4. Monitoring Points:

• Monitor net current assets and liquidity ratios closely to avoid cash flow shortages.
• Track revenue growth and profitability trends to assess ability to generate internal funds.
• Watch for any increases in current liabilities or delays in payments to suppliers/creditors.
• Review director advances or related party funding as a sign of ongoing support or financial stress.
• Keep abreast of any changes in ownership or management that could impact governance or credit risk.