THE SPEECH THERAPY CLINIC LTD

Executive Summary

The Speech Therapy Clinic Ltd exhibits a healthy financial trajectory with improving net assets and strong liquidity indicators suitable for credit approval. Its micro-entity status and steady management suggest reliable operational resilience for modest credit facilities. Continued monitoring of working capital and asset investments will ensure risk is managed going forward.

THE SPEECH THERAPY CLINIC LTD - Analysis Report

Company Number: 13312543

Analysis Date: 2025-07-29 13:56 UTC

1. Credit Opinion: APPROVE
   The Speech Therapy Clinic Ltd demonstrates a stable and improving financial position with no overdue filings or indications of distress. The company is a micro-entity with minimal employees and modest fixed assets, but it has shown strong growth in net assets and working capital within three years of operation. Directors are credible professionals directly involved in the relevant industry, suggesting sound management oversight. Given the company's positive balance sheet trends and micro-category status, it is likely capable of meeting modest credit obligations.

2. Financial Strength:
   The company’s net assets increased substantially from £8,977 in 2021 to £73,709 in 2024, driven by growth in both fixed assets (£2,558 to £20,201) and current assets (£28,830 to £103,238). Current liabilities decreased from £66,770 in 2023 to £49,730 in 2024, improving net current assets to £53,508, which signals stronger liquidity and reduced short-term obligations. The equity base is fully positive, with shareholders’ funds increasing consistently, indicating retained earnings accumulation and good capital retention.

3. Cash Flow Assessment:
   Current assets notably exceed current liabilities by a healthy margin, reflecting solid working capital management. The company holds sufficient short-term assets to cover immediate debts, reducing liquidity risk. Although exact cash flow statements are not provided, the improved net current assets and absence of overdue liabilities suggest adequate cash flow to support ongoing operations and debt servicing.

4. Monitoring Points:

• Continue to monitor working capital levels and ensure current liabilities remain manageable relative to current assets.
• Watch for any material changes in turnover or cash collection cycles that could affect liquidity.
• Track fixed asset investments to confirm they contribute positively to operational capacity without overextending the balance sheet.
• Maintain vigilance on director conduct and company filings to avoid compliance risk.