SEGARAJASINGHE HEALTH SOLUTIONS LIMITED

Executive Summary

Segarajasinghe Health Solutions Limited demonstrates weak financial health with ongoing negative equity and dependence on director loans. Its limited assets and minimal operations constrain creditworthiness and repayment capacity. Close monitoring of capital structure and director funding is essential before considering credit exposure.

SEGARAJASINGHE HEALTH SOLUTIONS LIMITED - Analysis Report

Company Number: 13436624

Analysis Date: 2025-07-20 16:46 UTC

1. Credit Opinion: DECLINE
   Segarajasinghe Health Solutions Limited exhibits a weak financial position with persistent negative net assets and shareholders’ funds, indicating accumulated losses and insufficient capital. The company relies on an unsecured, interest-free director loan for working capital, which suggests limited external funding capacity. Absence of employees and minimal operational scale further constrain business resilience. Given these factors, the company’s ability to repay credit facilities or meet commercial obligations is questionable at this stage.

2. Financial Strength:
   The company qualifies as a micro entity with very limited current assets (£2,200) and current liabilities (£2,040) as of 31 March 2024. Despite a small positive net current asset position (£164), the overall net liabilities (£154) and negative shareholders’ funds reflect ongoing capital erosion. The balance sheet shows no fixed assets and is heavily dependent on director financing, highlighting fragile financial footing and lack of tangible security.

3. Cash Flow Assessment:
   Working capital is minimal but positive, with current assets slightly exceeding current liabilities. However, the bulk of liabilities are owed to the director and are unsecured and interest-free, indicating reliance on internal support rather than operational cash generation. No employees and limited operations suggest cash inflows from trading activities are likely negligible. Liquidity risk exists if director funding ceases or if operational cash requirements increase.

4. Monitoring Points:

• Track changes in net assets and shareholders’ funds to assess capital restoration or further erosion.
• Monitor director loans closely for repayment terms, renewals, or potential conversion to equity.
• Review upcoming accounts for any evidence of operational revenue and cash flow improvement.
• Watch for any changes in company status or director conduct that may impact credit risk.