Company Number: 14384285

Analysis Date: 2025-07-20 14:28 UTC

1. Credit Opinion: APPROVE with caution. SH CLINIC LTD is a very young micro-entity with just two years of trading history. The company shows a strengthening balance sheet with net assets improving from £13,747 in 2023 to £34,240 in 2024. Current liabilities have decreased significantly, improving liquidity and working capital. The sole director and 100% shareholder appears to be actively managing the business. However, the company is small, with only 2 employees and limited financial history, so lending should be on modest terms with monitoring.

2. Financial Strength: The company’s net assets nearly tripled year-on-year, driven by a reduction in current liabilities from £34,976 to £10,442, while current assets remain stable around £44,000-£48,000. This provides a comfortable net current asset position of £34,240, indicating good short-term financial health. Total equity matches net assets, reflecting no long-term debt. As a micro-entity, fixed assets are apparently minimal or not reported separately, which is typical. Overall, the balance sheet is sound for the scale of operations.

3. Cash Flow Assessment: Current assets are primarily cash and receivables, sufficient to cover current liabilities almost 4 times over. This strong liquidity position signals an ability to meet short-term obligations and manage working capital effectively. The reduction in creditors suggests improved payment discipline or lower trade payables. Absence of audit and limited disclosures mean detailed cash flow analysis is not possible, but the working capital position supports positive cash flow assumptions.

4. Monitoring Points:

• Continued maintenance of low current liabilities and positive net working capital.
• Profitability trends as future P&L data becomes available to assess operating cash generation.
• Any changes in ownership or director involvement that may impact governance.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Business growth metrics such as turnover and customer base expansion to support scaling risk.