Company Number: 13050172

Analysis Date: 2025-07-20 13:21 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

Alpha Clinics Limited demonstrates modest financial stability but also shows a declining net asset base and reduced liquidity over the last year. The company is small (micro-entity category) and operates in a niche health-related market (hearing aid accessories and eye care products). The directors have maintained current filings without overdue returns or accounts, reflecting good compliance discipline. However, the drop in net current assets and net assets from £15,093 in 2023 to £7,718 in 2024 signals weakening financial resilience. Credit approval can be considered on condition of monitoring financial performance closely, possibly with limits on facility size or requiring periodic financial updates.

2. Financial Strength:

• The balance sheet is small but positive, with net assets of £7,718 as of November 2024.
• Fixed assets are minimal (£2,485), indicating limited capital investment or reliance on leased/outsourced resources.
• Current assets (£29,056) exceed current liabilities (£23,823), yielding positive net current assets of £5,233 but down substantially from £13,923 the previous year.
• Shareholders’ funds have reduced by nearly 50% year-on-year, suggesting either losses or distributions eroding equity.
• The company has a very low share capital (£100), typical for micro firms.
• Limited asset base and equity imply limited buffer against adverse events.

3. Cash Flow Assessment:

• The company maintains positive working capital but has seen a material reduction, which could impact liquidity.
• The current ratio (current assets/current liabilities) is approximately 1.22, down from about 1.46, indicating a tightening liquidity position.
• No direct cash flow data is provided, but the decline in current assets and net current assets suggests cash flow pressures or increased payables.
• The business has a very small employee base (3 employees) helping to control fixed costs.
• The company’s ability to service short-term obligations appears adequate currently but vulnerable to shocks.

4. Monitoring Points:

• Track net current assets and liquidity ratios quarterly to detect further deterioration.
• Review profitability and retained earnings trends to understand causes of equity decline.
• Monitor overdue payments or extended creditor terms which may strain cash flow.
• Review management changes or strategy shifts, especially given two directors hold controlling interests.
• Maintain vigilance on compliance filings to avoid regulatory penalties.