Company Number: 14121584

Analysis Date: 2025-07-29 14:18 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   WE CARE NOTTINGHAM LIMITED shows a positive trajectory with increasing current assets and net assets over the last two years, indicating growth. However, the company’s net assets remain modest (£5,642 as of 2024), and it carries long-term creditors (£22,484) that significantly reduce net asset strength. The company is a micro-entity in a human health sector, growing its workforce from 7 to 18 employees, which suggests operational expansion but also increased overhead. Given these factors, credit extension should be conditional upon monitoring liquidity and repayment capacity closely, with conservative limits aligned to current asset levels.

2. Financial Strength:
   The balance sheet shows improving net current assets (£28,125 in 2024 versus £21,344 in 2023) driven by a doubling of current assets (£43,925 in 2024). However, the company also has significant creditors due after more than one year (£22,484), which reduces the overall net asset base to £5,642. Shareholders’ funds have increased but remain low, reflecting limited retained earnings likely due to the company’s recent incorporation in 2022. The capital structure is fragile, with the company relying on short-term asset growth and creditor financing.

3. Cash Flow Assessment:
   Current liabilities have increased considerably (from £776 in 2023 to £15,800 in 2024) but are still covered by current assets, resulting in positive net current assets. This suggests adequate short-term liquidity to meet immediate obligations. However, the increase in both current and long-term liabilities warrants attention to working capital management and cash conversion cycles. The company’s ability to generate positive operating cash flow is not directly reported, so further inquiry into income and cash flow statements is recommended before committing significant credit.

4. Monitoring Points:

• Track working capital changes and creditor payment terms to ensure liquidity remains positive.
• Monitor profitability and cash flow generation as the company scales its employee base.
• Watch for increases in long-term liabilities that may strain financial flexibility.
• Review director’s reports and any future filings for operational risks or changes in business strategy.
• Keep an eye on compliance with filing deadlines (currently up to date).