Company Number: 14458644

Analysis Date: 2025-07-20 12:25 UTC

1. Risk Rating: MEDIUM
   The company is newly incorporated (since late 2022) and operates in a service sector (dental practice) with modest financials. Its current assets slightly exceed current liabilities, indicating a small positive working capital buffer. However, the limited scale, modest cash reserves, and relatively high tax creditor create some solvency and liquidity concerns typical for a young business.

2. Key Concerns:

• Tax Liability: A significant corporation tax creditor of £24,888 is outstanding within current liabilities, which could pressure cash flow if not managed.
• Limited Operating History: With just over one year of trading, there is limited financial history to assess operational stability or profitability trends.
• Modest Cash Position: Cash holdings of £29,383 provide some liquidity cushion but could be insufficient if unforeseen expenses arise or if receivables are delayed.

3. Positive Indicators:

• Positive Net Current Assets: Working capital of £5,601 suggests the company can cover its short-term obligations at the balance sheet date.
• Shareholders’ Funds Positive: Equity of £6,949 indicates the company is not currently insolvent and has a small capital base invested.
• No Filing or Governance Issues: Accounts and confirmation statements are filed on time, showing regulatory compliance. The sole director is a practicing dentist, aligned with the company's business, suggesting appropriate management expertise.

4. Due Diligence Notes:

• Profitability and Cash Flow: Obtain management accounts or bank statements to verify ongoing cash flow adequacy and operating profitability since the latest accounts date.
• Tax Payment Status: Confirm status and payment plan for the corporation tax liability to assess risk of enforcement or penalties.
• Trade Debtors Aging: Review ageing of trade debtors (£14,530) to evaluate collectability and potential bad debt risk.
• Director’s Current Account: The £11,696 balance owed to the director should be clarified—whether it is an amount owed to or from the company, and terms of repayment.
• Business Model and Client Base: Understand the scale and sustainability of the dental practice’s client base to assess revenue stability.
• Future Capital Requirements: Investigate whether additional funding will be required in the short to medium term to support growth or cover liabilities.

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