Company Number: 12606774

Analysis Date: 2025-07-29 14:55 UTC

1. Credit Opinion: DECLINE. Clinical Temps Limited shows a significant deterioration in financial position from 2023 to 2024, with net current assets shifting from a healthy positive £210,844 to a negative £2,343. The company’s total net assets have fallen sharply from £218,468 to £68,058. This steep decline indicates liquidity stress and weaker ability to meet short-term obligations. Additionally, the average number of employees decreased from 75 to 65, suggesting possible operational contraction. Without evidence of turnaround plans or improved cash flow, the credit risk is elevated, and thus the company is not recommended for new or increased credit facilities at this time.

2. Financial Strength: The balance sheet reveals a rise in fixed assets from £7,624 to £70,401, which may indicate recent capital investment, but current assets dropped substantially from £411,354 to £140,404. Current liabilities remain high at £142,747, exceeding current assets and resulting in a negative working capital position. The net assets have declined by over 69% year-on-year, reflecting accumulated losses or write-downs. The micro-entity status limits disclosure detail, but the overall financial strength appears weak with declining equity and strained liquidity.

3. Cash Flow Assessment: There is insufficient detailed cash flow data, but the negative net current assets position signals potential cash flow challenges. The sharp reduction in current assets and the relatively stable current liabilities imply tightening liquidity. The company’s cash or equivalents are not explicitly stated for 2024, but the prior year’s cash was £21,847, and given the working capital deficit, cash reserves are likely depleted or under pressure. The shrinking workforce may be a cost-saving measure to conserve cash. Overall, the company’s short-term liquidity and working capital situation are concerning.

4. Monitoring Points:

• Monitor quarterly cash flow statements and bank balances closely to detect liquidity stress early.
• Watch for improvements in net current assets and reduction in current liabilities.
• Track any changes in employee headcount as an indicator of operational health.
• Review management commentary on future business outlook and any restructuring plans.
• Confirm timely filing of future accounts and confirmation statements as a sign of sound governance.