Company Number: 12593981

Analysis Date: 2025-07-29 19:49 UTC

1. Credit Opinion: DECLINE
   Silverback Medical Support Ltd displays a persistently weak financial position with negative net assets and net current liabilities for consecutive years. The company's balance sheet reflects a shareholders' deficit increasing from -£6,574 in 2023 to -£18,427 in 2024, indicating erosion of equity and accumulated losses. The negative working capital position and low cash balances (£4,769 in 2024) suggest limited ability to meet short-term obligations. There is no indication of borrowings or external financing to support liquidity. Given these factors, the company currently lacks the financial strength and cash flow capacity to service new or existing credit facilities reliably.

2. Financial Strength:
   The company’s total assets are insufficient to cover its current liabilities, resulting in net current liabilities of -£24,808 and overall net liabilities of -£18,427 as of May 2024. Tangible fixed assets are minimal (£8,341), and stock levels have increased to £80,000, which may indicate inventory build-up without corresponding sales growth. The low share capital (£2) and a single employee further point to a micro or very small enterprise with limited capital base. The worsening deficit and reliance on trade creditors highlight weak financial resilience and poor capitalization.

3. Cash Flow Assessment:
   Cash on hand has sharply declined from £33,937 in 2023 to £4,769 in 2024, severely restricting liquidity. Debtors remain negligible (£649), indicating limited receivables or slow collection. The current liabilities remain static at £110,226, suggesting outstanding payables are not being reduced. Negative net current assets indicate working capital deficiency, implying the company may struggle with day-to-day operational cash flow and has limited buffer to absorb any financial stress.

4. Monitoring Points:

• Track improvement or further deterioration in net current assets and net liabilities in future filings.
• Monitor cash flow trends, especially cash balance and debtor collection efficiency.
• Watch inventory levels to assess if stock increases are supported by sales.
• Evaluate any material changes in capital structure or external funding arrangements.
• Review director conduct and any changes in management strategy to improve financial health.