Company Number: 14458715

Analysis Date: 2025-07-20 17:46 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Wellness Technology Ltd is a micro-entity incorporated recently in late 2022, operating in the "Other human health activities" sector. The company shows positive net assets (£143,998) with no long-term liabilities, indicating a clean balance sheet. However, current liabilities slightly exceed current assets, resulting in a small negative net current assets position (-£2,340), which suggests some short-term liquidity pressure. Given the limited trading history (less than 2 years) and minimal financial data, credit approval should be conditional upon monitoring liquidity and operational cash flow closely.

2. Financial Strength:
   The company’s balance sheet is asset-backed primarily by fixed assets (£146,338), likely equipment or property relevant to its health activities. The total net assets (£143,998) reflect equity funded operations with no long-term debt, reducing default risk from leverage. Share capital is nominal (£100), meaning most equity is retained earnings or capital reserves. The negative net current assets position is small but noteworthy and may require working capital management improvement.

3. Cash Flow Assessment:
   Current liabilities (£28,922) slightly exceed current assets (£26,582), indicating a working capital deficit of £2,340. This suggests potential challenges in meeting short-term obligations without external cash inflows. The company employs approximately 5 people, which will drive ongoing payroll and operational cash requirements. Cash flow from operations and access to additional liquidity should be verified to ensure ongoing viability and debt servicing capability.

4. Monitoring Points:

• Track quarterly cash flow statements and bank balances to confirm liquidity improvements.
• Monitor trade creditors and debtors turnover to assess working capital cycle efficiency.
• Review future filings for revenue growth and profitability indicators as the company matures.
• Observe director changes and governance stability, as recent director turnover may affect management continuity.
• Watch for any overdue filings or changes in credit terms with suppliers.