Company Number: 13971492

Analysis Date: 2025-07-19 13:04 UTC

1. Risk Rating: LOW
   Teeth Savers Ltd demonstrates a solid net asset position, positive working capital, and no overdue filings. The company is newly incorporated but shows improving financial strength with adequate liquidity and no signs of financial distress.

2. Key Concerns:

• Director Turnover: The sole director resigned in early April 2024, shortly after the financial year end, which may indicate management transition risks.
• Director Loans: The company has significant director loan balances (£18,225 owed to directors), which could impact cash flow depending on repayment terms.
• Operating Lease Commitments: Future lease obligations total £14,556 over the next five years, representing a fixed cost that must be managed alongside growth plans.

3. Positive Indicators:

• Strong Liquidity: Cash balances increased from £37,972 to £57,098 year-on-year, supporting short-term operational needs.
• Positive Net Current Assets: Increased from £30,861 in 2023 to £73,624 in 2024, indicating improved working capital management.
• Compliance: No overdue accounts or confirmation statement filings, demonstrating good regulatory compliance and governance.
• Profitability Growth: Retained earnings more than doubled from £30,859 to £74,330, showing business growth and operational stability.
• Small Company Filing Exemption: The company complies with small company reporting standards, reducing audit burden and costs.

4. Due Diligence Notes:

• Investigate the circumstances around the director resignation and current governance structure to assess continuity and management capability.
• Review terms and conditions of director loans to understand repayment schedules, interest, and impact on cash flow.
• Confirm lease agreement details and potential options for renegotiation or exit to manage fixed costs.
• Examine customer concentration and revenue streams within dental practice activities to assess operational sustainability.
• Verify completeness of accounts and whether any contingent liabilities exist beyond reported figures.