Company Number: 13745858

Analysis Date: 2025-07-20 19:14 UTC

Financial Health Assessment for THE SWIM SURGERY LIMITED

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1. Financial Health Score: B-

Explanation:
THE SWIM SURGERY LIMITED exhibits signs of a young but gradually stabilizing financial condition. The company shows positive net current assets and net assets with a modest but improving equity base. However, the relatively low absolute values, director’s loan balance, and limited scale of operation suggest vulnerability and limited financial buffer. This score indicates a cautiously healthy state, with room for improvement to strengthen resilience.

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2. Key Vital Signs

Metric	2023 Value (£)	2022 Value (£)	Interpretation
Current Assets	13,486	4,965	Indicates the company’s liquid assets or resources that can be converted into cash within a year. Noticeable growth, reflecting better liquidity.
Current Liabilities	10,508	4,705	Short-term obligations due within one year. These have increased but remain covered by current assets.
Net Current Assets	2,978	260	Working capital positive and improved significantly; a healthy sign of short-term financial stability.
Shareholders’ Funds	2,978	260	Equity value increased, indicating retained earnings or capital injection, strengthening the company’s financial foundation.
Director’s Loan Account	(2,654 owed to company)	(4,640 owed to company)	The director's loan balance shows the director has lent money to the company, which supports liquidity but also signals reliance on internal financing.

Additional context:

• The company is classified as a Micro entity, indicating a small scale of operations with minimal filing requirements.
• No audit was required, standard for micro-entities, but this limits detailed financial insights.
• The company employs 1 person (likely the director) as of 2023, indicating a very lean operation.
• The company’s SIC code (82990 - Other business support service activities not elsewhere classified) suggests a service business with potentially variable cash flows.

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3. Diagnosis: Business Financial Health

• Liquidity and Working Capital: The company has maintained positive and improving working capital, a vital "pulse check" showing that short-term debts can be covered by assets. This is a healthy cash flow symptom, preventing immediate financial distress.

• Equity Growth: Shareholders’ funds have increased from £260 to nearly £3,000 within a year. This indicates retained profits or capital injection, a sign of strengthening financial muscle. The company is building a buffer to absorb shocks.

• Reliance on Director Financing: The director loan account balance decreasing from £4,640 to £2,654 owed to the company suggests the director previously supported the business financially but the company is repaying or reducing its reliance. While this is positive, it also shows some dependency on internal financing rather than external or operational cash flow.

• Scale and Growth Stage: As a micro-entity incorporated in late 2021, THE SWIM SURGERY LIMITED is still in its early growth phase. The small asset and equity base reflect a startup or early-stage business with limited financial depth.

• Risk Factors: The small size and limited equity mean the company could be vulnerable to unexpected expenses or downturns. The absence of an audit limits external validation of financial health but is acceptable for the company size.

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4. Recommendations

• Enhance Cash Reserves: Although liquidity has improved, maintaining or increasing cash reserves will help buffer unforeseen expenses and smooth operations.

• Reduce Director Loan Dependency: Continue to repay or convert director loans into equity if possible, reducing financial risk associated with personal lending.

• Develop Profitability and Retained Earnings: Focus on increasing operational profitability to build retained earnings, which will strengthen shareholders’ funds and financial resilience.

• Maintain Timely Filings and Compliance: Continue to meet filing deadlines to avoid penalties and maintain credibility with stakeholders.

• Consider Financial Planning: Even as a micro business, implementing basic financial forecasting and budgeting can help anticipate cash flow needs and support sustainable growth.

• Explore Growth Opportunities: Carefully scale operations or diversify service offerings to boost turnover, which will support stronger financial health in the medium term.

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