SRCJ LTD

Executive Summary

SRCJ LTD is a micro-sized dental practice with minimal financial resources and a very limited equity base, showing marginal working capital and net assets. The company’s financial position is weak with little evidence of capacity to service external debt or absorb losses. Credit facilities are not recommended at this stage without significant improvement in financial strength or cash flow generation.

SRCJ LTD - Analysis Report

Company Number: 14149615

Analysis Date: 2025-07-29 17:01 UTC

1. Credit Opinion: DECLINE
   SRCJ LTD’s financials indicate extremely limited net assets (£293 as of June 2024) and a working capital position that is barely positive (current assets of £10,115 vs current liabilities of £10,980). The company is micro-sized, with only one employee (the director), and minimal equity base. The balance sheet shows negligible financial strength, and the company appears reliant on very modest operational scale. Without an income statement or cash flow statement provided, it is difficult to confirm profit generation or cash flow sufficiency, but minimal net assets and current liabilities exceeding current assets in prior years raise concerns on repayment capacity. The company’s capacity to service external debt or withstand financial stress is highly constrained. Given these factors, approval for credit facilities is not advisable.

2. Financial Strength:
   SRCJ LTD’s balance sheet is extremely thin with net assets of £293, reflecting minimal retained earnings or shareholder investment. Current liabilities slightly exceed current assets historically, though a marginal improvement to a small positive net current asset position occurred in 2024. The company holds no fixed assets disclosed, indicating absence of tangible collateral. Shareholders’ funds are nominal, highlighting limited equity cushion to absorb losses. The micro-entity status means reporting is simplified, but the lack of detailed profit and loss information limits insight into profitability trends. Overall, the company’s financial strength is weak, with minimal buffer to absorb operational or market volatility.

3. Cash Flow Assessment:
   The company’s working capital is essentially break-even with current assets just covering current liabilities at year-end 2024. Prepayments and accrued income are low (£1,158), suggesting limited liquidity reserves. The absence of cash flow statements or profit and loss accounts makes assessment of operating cash flow impossible, but the minimal net assets and low equity indicate cash generation is very modest or possibly negative. The company employs only one individual (the director), likely keeping operating expenses low, but the tight liquidity position poses a risk for meeting short-term obligations or new credit commitments.

4. Monitoring Points:

• Track changes in net current assets and shareholders’ funds in future accounts to detect any improvement or deterioration in financial stability.
• Monitor timely filing of accounts and confirmation statements to ensure ongoing compliance and transparency.
• Assess any future inclusion of profit and loss or cash flow data for clearer insight into operational performance.
• Observe any increase in employee count or fixed assets indicating business growth or investment.
• Review director or company credit behavior for any indications of financial distress (e.g., overdue payments, defaults).