Company Number: 12499373

Analysis Date: 2025-07-29 18:28 UTC

1. Credit Opinion: APPROVE with close monitoring.
   Am Surgical Ltd demonstrates a solid financial position with increasing net assets and positive working capital. The company shows steady growth in fixed assets and net equity, indicating reinvestment in the business. However, reliance on finance lease obligations and a reduction in cash reserves warrant monitoring liquidity and debt servicing capacity carefully.

2. Financial Strength:
   The balance sheet reflects healthy net assets increasing from £137k in 2023 to £154k in 2024, supported by tangible fixed assets (notably motor vehicles and fixtures) and strong shareholders’ funds. The company’s gearing is moderate due to finance lease liabilities (£35k), which have decreased from £42k in the prior year, showing some deleveraging. The retained earnings (profit and loss reserve) have increased, indicating profitability accumulation. Overall, the financial structure is stable for a micro/small private limited company in the medical specialist sector.

3. Cash Flow Assessment:
   Current assets stand at £119k with cash of £72k, down from £138k the previous year, reflecting a decline in liquid reserves. Debtors have increased significantly to £47k from £9k, potentially indicating extended credit terms or billing cycle changes, which could pressure short-term liquidity. Current liabilities have decreased to £12k, improving net working capital to £107k, which is strong. The company’s ability to meet short-term obligations appears adequate, but the drop in cash and increased debtors should be watched carefully.

4. Monitoring Points:

• Cash conversion cycle: Monitor debtor collection periods closely to ensure cash inflows support operational needs.
• Lease obligations: Continue managing finance lease liabilities prudently to avoid cash flow strain.
• Profitability trends: Review profit and loss details when available to verify sustainable earnings underpinning equity growth.
• Director loans: Track any changes in director loan accounts which might impact liquidity or indicate shareholder funding reliance.
• Economic factors: As a healthcare specialist, regulatory changes or NHS contract variations may affect revenue stability.