Company Number: 14862263

Analysis Date: 2025-07-20 17:55 UTC

1. Credit Opinion: APPROVE (with caution) Spectrum Autism Diagnostic Services Ltd is a newly incorporated micro-entity with a clean and compliant filing record. The company's financials show positive net current assets and shareholders' funds, indicating initial capital adequacy. However, due to its very recent establishment (less than one year), limited operating history, and absence of employees, there is limited evidence of trading performance or cash flow generation. Credit approval can be granted but should be conditional on monitoring future financial development and operational activity to confirm sustainability.

2. Financial Strength:

• Total net assets stand at £7,064, supported entirely by current assets net of current liabilities.
• The balance sheet reflects a micro-sized entity with basic working capital but no fixed assets or long-term financing.
• The absence of accumulated losses or debt is positive; however, the asset base is modest, reflecting start-up phase.
• Shareholders’ funds equal net assets, showing no external borrowings, which reduces leverage risk.

3. Cash Flow Assessment:

• Current assets (£9,971) exceed current liabilities (£2,907) providing a net working capital buffer of £7,064.
• No information on cash flow from operations is available, but the positive net current assets suggest the company can cover short-term obligations at present.
• The lack of employees and presumably low overheads may support liquidity in the near term.
• Monitoring of actual cash inflows from client payments and operating expenses is essential as the business develops.

4. Monitoring Points:

• Track quarterly or interim financials to assess revenue growth and profitability trends.
• Monitor liquidity ratios, particularly current ratio and quick ratio, to ensure ongoing ability to meet short-term liabilities.
• Review director and shareholder activity for any changes indicating financial stress or strategic shifts.
• Evaluate any external financing or credit facility usage and repayment patterns.
• Confirm that the company hires employees as planned and begins trading to establish a revenue track record.