Company Number: 13880942

Analysis Date: 2025-07-20 12:41 UTC

1. Credit Opinion: APPROVE
   Relate 24/7 Care Ltd demonstrates a stable and improving financial position for a micro-entity. The company maintains positive net current assets with a growing equity base year-on-year, indicating an ability to meet short-term liabilities and sustain operations. The directors have filed timely accounts and confirmation statements, reflecting good compliance and governance. Given the micro size and limited employee count, the credit risk is moderate but manageable with no adverse director conduct or overdue filings.

2. Financial Strength:
   The company’s net assets have increased steadily from £11,517 in 2022 to £19,677 in 2025. This growth reflects retained earnings or additional capital injections supporting business expansion or working capital needs. Current assets (cash, receivables) exceed current liabilities by a comfortable margin (~2.7x coverage in 2025), providing a buffer against short-term financial stress. Shareholders’ funds exclusively consist of net assets, confirming no hidden liabilities or off-balance sheet debt.

3. Cash Flow Assessment:
   The positive net current assets indicate sufficient liquidity to cover immediate obligations. Although detailed cash flow statements are not provided, the increase in current assets and stable current liabilities suggest improving cash management and working capital efficiency. With only one employee, fixed overheads remain low, reducing pressure on cash flow. The company’s ability to generate operating cash flows adequate to cover liabilities appears reasonable.

4. Monitoring Points:

• Maintain positive net current assets and monitor any increases in current liabilities relative to assets.
• Track revenue growth and profitability as accounts do not disclose P&L reserves or turnover figures.
• Watch any changes in director composition or PSC to detect governance risks.
• Ensure continued timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Observe any expansion in employee base or fixed costs that could impact liquidity.