Company Number: 13131330

Analysis Date: 2025-07-20 14:10 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. Absolute Biomedical Ltd is a micro-entity that has demonstrated a positive net asset position and working capital throughout its operating history. However, there is evidence of declining net assets and current assets from 2024 to 2025, indicating some financial contraction. The company shows modest scale and limited fixed assets, with a small workforce (average 2 employees). The principal controlling director (Mr Robert Lee Harris) retains majority ownership and directorship, suggesting stable governance but limited diversification of control. Given the small size and recent decline in financial strength, credit should be extended with monitoring and possibly limits on exposure.

2. Financial Strength: The company’s net assets decreased from £39,900 in 2024 to £22,752 in 2025, a significant reduction of about 43%. Fixed assets are minimal (£1,002 in 2025) and have declined steadily. Current assets also dropped by nearly 44% in the latest year, which could indicate reduced cash or receivables. Despite this, the company maintains positive net current assets (£21,750), suggesting it can meet short-term liabilities without difficulty. The balance sheet reflects modest equity and limited capital buffer, typical for a micro-sized enterprise. The absence of long-term liabilities or provisions in 2025 improves the balance sheet quality compared to 2024.

3. Cash Flow Assessment: The net current asset position is positive and sizeable relative to liabilities, indicating reasonable liquidity. However, the substantial drop in current assets from £71,758 to £40,010 points to tightening cash or working capital resources. There is no detailed cash flow statement available, but the reduction in current assets and net assets may suggest cash outflows or increased operating costs. The company’s ability to generate consistent cash flows is not fully evidenced, so caution is warranted. The working capital position is sufficient for current operations but should be monitored closely for any further deterioration.

4. Monitoring Points:

• Track trends in current assets and liabilities to detect liquidity stress early.
• Monitor net asset erosion and causes (operating losses, asset disposals).
• Review management changes and any impact on governance or strategy, noting a director resignation in mid-2025.
• Observe business growth indicators such as turnover, client contracts, or sector developments in specialist medical services.
• Assess any upcoming filings for delays or restatements as a risk signal.