Company Number: 13959692

Analysis Date: 2025-07-29 19:25 UTC

1. Credit Opinion: DECLINE
   RESHAPE YOUR MIND PSYCHOTHERAPY LIMITED exhibits a weak financial position with sustained negative net assets over the last two years and deteriorating working capital. The company’s current liabilities significantly exceed its current assets (£1,922 vs. £70 as of March 2025), resulting in a negative net current asset position of £-1,852. This indicates poor short-term liquidity and challenges in meeting immediate obligations. The negative equity position suggests accumulated losses or insufficient capital injection. Given the company's micro size and that it is still relatively new (incorporated 2022), there is evidence of financial distress and limited resilience to economic shocks. Without clear signs of profitable operations or cash inflows, the risk of default on credit facilities is high.

2. Financial Strength:
   The balance sheet shows net liabilities of £1,852 at the latest reporting date, worsening from £578 net liabilities the previous year. Total current liabilities have increased while current assets remain minimal. The absence of fixed assets and minimal cash equivalents (only £70 in current assets) highlights a fragile capital structure. Shareholders’ funds are negative, reflecting losses or insufficient capital contributions. The company relies on a single director-owner, which concentrates control but also limits access to diversified financial resources. Overall, the financial strength is weak and below the threshold for extending unsecured credit.

3. Cash Flow Assessment:
   Current asset levels are critically low, insufficient to cover short-term liabilities. The negative net current assets imply working capital deficiencies and potential liquidity crises. The company's cash and equivalents are minimal and likely inadequate to support operational needs or service debt. No profit and loss data is available, but the declining net assets and increasing liabilities suggest ongoing losses or cash burn. The company’s micro entity status limits disclosure, but current data points to poor cash flow management and a high risk that obligations cannot be met when due.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital trends to detect further deterioration or improvement.
• Review any new capital injections or shareholder loans that may strengthen equity.
• Watch for overdue payments or creditor pressure indicating liquidity stress.
• Assess director’s plans for business growth and profitability turnaround.
• Keep track of any changes in company status or filings that may signal distress (e.g., administration or liquidation).