SOCIAL SKILLS IN PRACTICE LTD

Executive Summary

The company demonstrates a positive but very limited financial position typical of a micro-entity start-up with no employees and modest asset growth. It is capable of meeting short-term liabilities but remains financially fragile with restricted liquidity and operational scale. Credit approval is possible with prudent limits and ongoing close monitoring of cash flow and business development.

SOCIAL SKILLS IN PRACTICE LTD - Analysis Report

Company Number: 13815584

Analysis Date: 2025-07-29 15:05 UTC

1. Credit Opinion: APPROVE with conditions.
   The company is a recently incorporated micro-entity operating in the human health activities sector. It shows positive net assets and net current assets as of the latest accounts dated 31 December 2023, evidencing minimal but positive working capital. However, the business has no employees and very limited current assets (£3,632), indicating a very small scale operation with modest financial resources. The directors are experienced consultants and shareholders with equal control, which suggests stable management but limited scale and resources. Approval is recommended with conditions such as monitoring cash flow closely and limiting credit exposure to amounts commensurate with the company’s size and financial capacity.

2. Financial Strength:
   The balance sheet shows net assets of £2,961 at the end of 2023, up from £100 the previous year, indicating some asset growth though still at a very low base. Current assets are primarily cash or equivalents, with current liabilities at only £671, resulting in a positive working capital position of £2,961. There are no fixed assets reported. The equity increase suggests some capital injection or retained earnings but overall financial strength is weak due to the micro scale and low asset base. The absence of employees and limited operational scale raise concerns about the company’s ability to generate substantial revenue or withstand financial stress.

3. Cash Flow Assessment:
   The company holds a small cash buffer but has no employees or significant liabilities, implying low operating costs. However, the minimal current assets limit liquidity flexibility. The positive net current assets suggest the company can meet short-term obligations presently, but the absence of detailed profit and loss data restricts full cash flow visibility. Given its micro status and limited financial data, caution is warranted; the company likely relies on director funding or minimal trading activity to maintain liquidity.

4. Monitoring Points:

• Track future filings for revenue growth and profit generation to assess improving financial viability.
• Monitor working capital trends and any increase in liabilities that could pressure liquidity.
• Review director transactions or related party loans that may impact financial stability.
• Evaluate any changes in operational scale, including hiring or expanding assets, which would affect credit risk.
• Observe timely submission of accounts and confirmation statements as indicators of good governance.