APOORVA MEDICAL SERVICES LIMITED

Executive Summary

APOORVA MEDICAL SERVICES LIMITED demonstrates some liquidity and solvency pressures with negative net current assets and declining equity, but maintains compliance and has stable management. The limited financial disclosures typical of a micro-entity restrict a full assessment, warranting further inquiry into cash flows and operational sustainability. Overall, the company carries a medium risk profile for investors based on available data.

APOORVA MEDICAL SERVICES LIMITED - Analysis Report

Company Number: 12531956

Analysis Date: 2025-07-29 15:56 UTC

1. Risk Rating: MEDIUM
   The company shows ongoing negative net current assets (net current liabilities) and declining net assets over recent years, indicating potential liquidity stress. However, it remains active, compliant with filings, and maintains modest equity.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of £27,613 as of 31 March 2024, suggesting short-term obligations exceed liquid assets, which raises liquidity risk.
• Declining Net Assets: Shareholders' funds have decreased from £25,042 in 2022 to £17,785 in 2024, indicating erosion of equity that could impact solvency if the trend continues.
• Limited Financial Disclosure: Being a micro-entity, the company files unaudited accounts with limited detail, restricting transparency on profitability, cash flow, and contingent liabilities.

3. Positive Indicators:

• Regulatory Compliance: The company is current with all statutory filings including accounts and confirmation statements, reflecting good governance and regulatory adherence.
• Stable Management: Directors have been in place since incorporation with no reported disqualifications or governance concerns.
• Modest Fixed Assets: Investment in fixed assets around £46k suggests some capital base which could support operations and potentially be leveraged if needed.

4. Due Diligence Notes:

• Investigate underlying causes of persistent negative working capital and assess cash flow management to understand operational liquidity.
• Review detailed management accounts or bank statements if available to evaluate profitability trends and cash generation.
• Confirm if any off-balance sheet liabilities or contingent risks exist that might exacerbate financial stress.
• Assess the business model sustainability given the medical practice SIC code, including patient base, revenue streams, and competitive environment.