SCHEMA THERAPY SYSTEMS LTD

Executive Summary

Schema Therapy Systems Ltd is a micro-sized private company with a stable balance sheet, positive net assets, and improving cash liquidity, demonstrating its ability to meet short-term liabilities. The company’s small scale and limited operational complexity warrant conditional credit approval with focus on monitoring debtor trends and ongoing cash flow. Overall, its financial position supports a low-risk credit facility subject to continued prudent financial management.

SCHEMA THERAPY SYSTEMS LTD - Analysis Report

Company Number: 13056577

Analysis Date: 2025-07-29 15:13 UTC

1. Credit Opinion: APPROVE with monitoring.
   Schema Therapy Systems Ltd demonstrates a positive net asset position and consistent net current assets over the last three years, indicating a stable financial base. The company shows no signs of distress or liquidity issues, with cash balances increasing year-on-year. However, the company's scale is very small, with no employees and modest debtor balances, suggesting limited operational complexity. Given the stable but modest financial footprint and the company’s young age (incorporated in late 2020), approval for credit facilities is reasonable but should be conditional on ongoing monitoring of cash flow and debtor collection performance.

2. Financial Strength:
   The balance sheet reflects a small but stable equity base (£3,902 as at 31 March 2024) with net current assets of £3,902, supported by cash of £4,283. The company has no fixed assets currently (fully depreciated computer equipment), indicating limited capital investment. Current liabilities are low (£756), which the company can cover comfortably with available current assets. Shareholders’ funds have remained consistent, suggesting no recent capital injections or losses. Overall, the financial strength is adequate for a micro-sized professional services entity, with no indebtedness or signs of leverage.

3. Cash Flow Assessment:
   Cash on hand has improved significantly from £2,147 to £4,283 in the latest year, indicating good liquidity and cash management. Debtors have reduced sharply, from £2,625 to £375, which may reflect improved collection or reduced sales on credit; this warrants watching for potential revenue impact. Low current liabilities relative to cash and debtors reflect healthy short-term liquidity and working capital management. The absence of employees and low accruals further reduce cash flow pressure. The company appears capable of meeting short-term obligations without strain.

4. Monitoring Points:

• Debtor levels and aging: The sharp drop in debtors from the previous year should be monitored to ensure it is not due to declining sales.
• Revenue and profitability trends: Lack of P&L data limits insight; future filings should be reviewed for profit generation.
• Cash flow continuity: Continued maintenance or growth of cash reserves is critical given the company’s small size and limited asset base.
• Director involvement and governance: Directors are professionals in psychology, which fits the business nature, but given the small operation, any changes in management may impact stability.