PSYCHCARE ONLINE LTD

Executive Summary

Psychcare Online Ltd is a micro-entity showing moderate capital growth and compliance with regulatory filings, but its significant long-term liabilities and minimal workforce present solvency and operational risks. Further investigation into debt structure, cash flows, and operational model is recommended to fully assess financial stability and sustainability.

PSYCHCARE ONLINE LTD - Analysis Report

Company Number: 13105432

Analysis Date: 2025-07-20 12:12 UTC

1. Risk Rating: MEDIUM
   Psychcare Online Ltd shows some positive equity growth and asset accumulation. However, significant long-term liabilities exceeding current assets and fluctuating net current assets signal potential solvency and liquidity concerns. The absence of employees and reliance on directors for operations may impact operational stability.

2. Key Concerns:

• High Long-Term Liabilities: Creditors falling due after more than one year increased substantially from £1.17M (2023) to £1.53M (2024), exceeding current assets significantly, which raises solvency risks.
• Net Current Assets Variability: Net current assets dropped from £1.07M (2023) to £114.9k (2024) using the initial data but from the notes appear to be £114.9k (2024) vs £92.1k (2023), suggesting some inconsistency or data interpretation issues; this volatility may affect liquidity.
• No Employees: Zero average employees reported for 2024 indicates operational dependency on directors or contractors, which may limit scalability and sustainability.

3. Positive Indicators:

• Increasing Net Assets and Shareholders’ Funds: Net assets rose from £96,236 (2023) to £143,407 (2024), reflecting some capital growth and retained earnings.
• Timely Filings: Accounts and confirmation statements are filed on time with no overdue status, indicating compliance with regulatory requirements.
• Fixed Asset Growth: Fixed assets increased significantly from £1.17M to £1.56M, suggesting investment in long-term resources.

4. Due Diligence Notes:

• Clarify Long-Term Debt Nature: Investigate the composition and terms of the £1.53M long-term creditors to assess repayment obligations and refinancing risks.
• Examine Cash Flow and Profitability: Obtain profit and loss data and detailed cash flow statements to better understand operational cash generation and sustainability.
• Understand Operational Model: Given no employees, clarify how services are delivered, the role of directors, and dependency on external contractors or technology platforms.
• Confirm Data Accuracy: Resolve apparent discrepancies in current liabilities and net current assets figures between summary and notes to ensure accurate risk assessment.
• Review Directors’ Backgrounds: Although no disqualifications are noted, review directors’ experience and any related party transactions for governance scrutiny.