A1 MEDICAL LTD

Executive Summary

A1 MEDICAL LTD is a newly formed small private company with limited financial history and modest net asset value. The significant long-term creditor balance and low liquidity raise concerns over solvency and operational sustainability at this early stage. While statutory compliance is current and the company operates in a specialized niche, further due diligence is warranted on creditor arrangements, management stability, and cash flow viability before considering investment.

A1 MEDICAL LTD - Analysis Report

Company Number: 15112220

Analysis Date: 2025-07-29 20:32 UTC

1. Risk Rating: HIGH

Justification: The company is newly incorporated with limited financial history, showing very low net assets (£1,507) and significant long-term creditors (£39,800) relative to current assets and liabilities. The balance sheet indicates a heavy creditor position beyond one year, which raises concerns on solvency and financial stability at this early stage. The small scale (2 employees) and reliance on director loans also suggest operational fragility.

2. Key Concerns:

• Solvency risk from substantial long-term creditors (£39,800) exceeding net current assets and shareholders’ funds, indicating potential difficulty in meeting obligations.
• Limited liquidity with cash balance (£12,405) being modest and current liabilities (£4,214) primarily loans from directors, which may not be sustainable funding.
• Operational dependence on a very small team (2 employees) and recent director turnover, with potential governance and continuity issues.

3. Positive Indicators:

• Company is current with statutory filings (accounts and confirmation statements) and no overdue returns.
• The business operates in a specialized retail medical goods sector (SIC 47749), which may have niche market opportunities.
• Tangible fixed assets present, albeit small (£2,975), showing some investment in operational infrastructure.

4. Due Diligence Notes:

• Clarify the nature and terms of the £39,800 long-term creditor balance to understand repayment schedules and creditor identity.
• Assess the business plan and cash flow projections to evaluate operational sustainability and ability to service debts.
• Investigate the reason for director changes within the first year and confirm management stability.
• Confirm the owners’ continued financial support and commitment to the company given the current capital structure.
• Review any contingent liabilities or off-balance-sheet obligations not disclosed.