THE NURSING AGENCY LTD

Executive Summary

The Nursing Agency Ltd exhibits fragile financial health characterized by negative working capital and declining shareholder funds, reflecting liquidity challenges despite stable governance. Credit approval is feasible under conditions focused on rigorous liquidity monitoring and mitigating cash flow risks. Close attention to creditor management and profitability improvements is essential for sustaining creditworthiness.

THE NURSING AGENCY LTD - Analysis Report

Company Number: 14174265

Analysis Date: 2025-07-29 19:53 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   The Nursing Agency Ltd is a recently incorporated micro-entity operating in the health and temporary employment sector. Its small scale and negative net current assets position indicate tight liquidity and working capital constraints. However, the absence of overdue filings and the single controlling director with full voting rights suggest stable governance. Approval can be granted with conditions emphasizing close liquidity monitoring and possible guarantees or covenants to mitigate cash flow risk.

2. Financial Strength:
   The balance sheet shows very limited fixed assets (£1,008) and predominantly current assets (£5,193) as at 30 June 2024. Current liabilities exceed current assets by £853, resulting in negative net current assets. Shareholders’ funds have fallen from £464 in 2023 to £155 in 2024, indicating a depletion of equity possibly from operational losses or cash use. The company’s micro status and small scale limit financial resilience, and the current liabilities pressure warrants caution.

3. Cash Flow Assessment:
   Negative working capital highlights potential liquidity pressure. The increase in current liabilities from £893 to £6,046 in one year is significant and suggests the company may be relying on short-term creditor financing or deferring payments. Current assets increased but not proportionally, and cash or equivalents are not explicitly stated but likely limited. With only one employee, operating costs may be low, but the business must improve cash inflows or secure additional funding to service liabilities timely.

4. Monitoring Points:

• Liquidity ratios, particularly current ratio and quick ratio, to track improvements or deterioration.
• Timeliness of creditor payments and any supplier negotiations or trade credit terms.
• Profitability trends in future accounts to assess if equity erosion continues.
• Director’s ability to inject funds or obtain external financing if needed.
• Any changes in control or corporate structure that might impact financial stability.