PSYCHIATRY SPECIALIST CONSULTANCY LIMITED

Executive Summary

Psychiatry Specialist Consultancy Limited exhibits significant financial stress as evidenced by increasing net liabilities and a large working capital deficit. While the directors’ continuing financial support currently underpins its going concern position, the company’s liquidity and solvency risks are material. Investors should conduct further due diligence on financial backing and operational sustainability before considering exposure.

PSYCHIATRY SPECIALIST CONSULTANCY LIMITED - Analysis Report

Company Number: 12745059

Analysis Date: 2025-07-29 20:26 UTC

1. Risk Rating: HIGH
   Justification: The company has persistent net liabilities over recent years, increasing from -£2,219 in 2020 to -£4,358 in 2023, indicating weakened solvency. Current liabilities consistently exceed current assets, resulting in negative net current assets (£-5,126 in 2023), which signals liquidity distress. Although directors assert ongoing working capital support, the financial foundation appears fragile for a micro-entity with minimal capital.

2. Key Concerns:

• Negative Net Assets and Equity: The company’s net liabilities have deteriorated year-on-year, raising concerns about its ability to meet long-term obligations.
• Working Capital Deficit: Current liabilities more than triple current assets, indicating potential cash flow problems and risk of inability to pay short-term debts.
• Reliance on Directors’ Support: The going concern statement depends on directors’ continuing provision of working capital, which is not guaranteed and heightens risk exposure.

3. Positive Indicators:

• No Overdue Filings: The company is up to date with accounts and confirmation statements, reflecting regulatory compliance and good governance in reporting.
• Stable Management: Both directors are experienced hospital consultants and have maintained control since incorporation, suggesting operational continuity.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting, reducing administrative burden and costs.

4. Due Diligence Notes:

• Verify the nature and terms of any director loans or financial support underpinning working capital to assess sustainability.
• Review cash flow statements or bank statements (if available) to confirm liquidity position and timing of creditor payments.
• Investigate any contingent liabilities or off-balance sheet obligations that could exacerbate financial strain.
• Assess the company’s revenue streams and client base stability given its specialist medical practice nature to evaluate operational viability.