Company Number: SC741860

Analysis Date: 2025-07-20 17:16 UTC

1. Credit Opinion: DECLINE. Resolve Psychotherapy Ltd is a micro-entity with limited financial resources and minimal asset base. The company shows negative net current assets and net liabilities of £5,453 for the years ending 2023 and 2024, indicating poor short-term liquidity. The absence of fixed assets and very low current assets (£1,663 in 2024) compared to current liabilities (£7,116) suggest insufficient working capital to meet obligations as they fall due. The company is very young (incorporated 2022) and its financial position shows no signs of improvement or growth. The sole director and controlling shareholder has limited financial disclosure and no indication of external funding or financial reserves that would support credit exposure. Given this fragile financial profile and lack of operational scale or collateral, the company does not currently demonstrate adequate capacity to service debt or commercial credit.

2. Financial Strength: The balance sheet is weak with net liabilities reported (£5,453), no fixed assets, and current liabilities exceeding current assets significantly. Shareholders' funds are negative, reflecting accumulated losses or unpaid liabilities. The company operates with a single employee and very low asset base, which raises concerns about resilience and ability to absorb financial shocks. The static net asset position over two years highlights no financial improvement or capital injection.

3. Cash Flow Assessment: Cash and equivalent resources are minimal (£1,663 in 2024) and insufficient to cover short-term debts (£7,116). The company’s working capital is negative, indicating liquidity constraints. There is no evidence of receivables or other current assets that might convert into cash quickly. Given the nature of psychotherapy services, cash flow may rely heavily on timely client payments; however, no data on revenue or cash inflows is provided. The liquidity risk is high, and the company would likely struggle to meet unexpected expenses or debt repayments without additional financing.

4. Monitoring Points:

• Regular review of updated financial statements to track any improvement in working capital and net assets.
• Monitoring payment patterns and ageing of payables to detect any late payments or defaults.
• Watch for any capital injections or loans from the director or third parties that improve liquidity.
• Observe changes in business scale, employee count, or diversification of income sources.
• Keep track of any overdue filings or changes in company status that could indicate distress.