SIL DIAGNOSTICS LTD

Executive Summary

SIL DIAGNOSTICS LTD is a micro-sized medical practice company showing steady financial improvement with positive working capital and increasing cash balances. Their balance sheet strength supports low-risk credit exposure at this stage. Continued monitoring of liquidity and operational growth is recommended as the business develops.

SIL DIAGNOSTICS LTD - Analysis Report

Company Number: 14156107

Analysis Date: 2025-07-29 20:58 UTC

1. Credit Opinion: APPROVE with low risk - SIL DIAGNOSTICS LTD shows a stable and improving financial position despite being a very young company (incorporated in 2022). The company maintains positive net assets and working capital, indicating the ability to meet short-term obligations. The absence of audit requirements and minimal employee count reflect a small operational scale, but the consistent growth in equity and cash balances supports creditworthiness. Given the sector (general medical practice), steady cash and low liabilities, they appear capable of servicing modest credit facilities.

2. Financial Strength: The company’s balance sheet shows net assets increasing from £6,610 (2023) to £11,237 (2024), demonstrating growth in retained earnings (profit and loss account) from £6,510 to £11,137. Share capital remains nominal at £100, typical for a micro-entity. Current liabilities are low and stable (~£20,800), with cash on hand increasing to £32,045, providing an adequate buffer. The net current assets of £11,237 reflect positive working capital, enhancing balance sheet liquidity. Overall, the financial strength is sound for a micro-sized private limited company.

3. Cash Flow Assessment: Cash balances have improved year on year, increasing by nearly £5,000 to £32,045, indicating positive cash generation or capital injection. Current liabilities remain stable, and net current assets are positive, pointing to manageable short-term liquidity risk. The company has a single employee, keeping overheads low, which supports cash conservation. While detailed cash flow statements are not provided, the available data suggests sufficient liquidity to cover immediate payables without stress.

4. Monitoring Points:

• Scale of operations: Monitor turnover and profitability growth as the company expands beyond micro-size.
• Working capital trends: Watch for any deterioration in net current assets or rising short-term liabilities.
• Cash flow stability: Ensure cash reserves grow in line with operational needs, especially if credit exposure increases.
• Management prudence: Given the small scale and single director, assess governance and financial controls periodically.
• Filing compliance: Continue to ensure on-time submission of accounts and confirmation statements.