ASIF NASEEM HEALTHCARE LTD

Executive Summary

ASIF NASEEM HEALTHCARE LTD demonstrates a stable and healthy financial condition typical of a micro-entity healthcare provider, with strong liquidity and positive net assets. However, recent declines in current and fixed assets suggest cautious monitoring of cash flow and asset management is advisable to sustain growth and avoid potential liquidity challenges. Implementing tighter credit controls and strategic reinvestment will support ongoing financial wellness.

ASIF NASEEM HEALTHCARE LTD - Analysis Report

Company Number: 13923127

Analysis Date: 2025-07-29 17:09 UTC

Financial Health Assessment: ASIF NASEEM HEALTHCARE LTD

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1. Financial Health Score: B

Explanation:
The company exhibits solid financial footing with strong net current assets and net assets relative to its size as a micro-entity. Liquidity is healthy, and shareholders’ funds are positive and stable. However, a slight decrease in fixed and current assets compared to the prior year suggests some caution. Overall, the company shows signs of good financial wellness but with room for improved asset management and growth.

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2. Key Vital Signs:

Metric	2024 Value	Interpretation
Fixed Assets	£1,326	Minimal long-term asset base, typical for a micro healthcare practice; slight decrease vs prior year indicates asset disposals or depreciation.
Current Assets	£17,408	Healthy level of liquid assets including cash and receivables; decreased from £26,135 in 2023, signaling reduced liquidity or collections issues.
Current Liabilities	£1,278	Low short-term debts, indicating manageable payables and obligations due within one year.
Net Current Assets	£16,130	Very strong working capital position, implying the company can comfortably cover its short-term liabilities.
Net Assets (Shareholders’ Funds)	£17,456	Positive net worth demonstrates that the company’s assets exceed liabilities, reflecting financial stability.
Employee Count	2	Small workforce consistent with micro-entity status, manageable overhead.

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3. Diagnosis: Financial Health Analysis

Vital Signs Interpretation:
ASIF NASEEM HEALTHCARE LTD functions with a "healthy cash flow" analogy — its net current assets cushion is robust, indicating strong short-term financial health. The company’s low current liabilities relative to current assets show no immediate liquidity distress, akin to a patient with stable vital signs and no acute symptoms.

Symptoms of Distress:

• The notable decline in current assets (from £26,135 to £17,408) may be a symptom of reduced cash inflows or slower debtor collections.
• The slight reduction in fixed assets suggests limited reinvestment or asset disposals, which could eventually affect operational capacity if sustained.
• While net assets have decreased slightly, they remain positive, indicating no chronic financial illness.

Underlying Business Health:
The company is in a stable financial condition but may be experiencing early signs of cash flow tightening or reduced operational scale. No signs of insolvency or financial distress are evident. The stable employee base and positive equity reflect a well-managed business, but attention should be paid to asset management and liquidity trends.

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4. Recommendations: Path to Improved Financial Wellness

• Enhance Cash Flow Management:
  Investigate reasons for decreased current assets, particularly outstanding receivables. Implement stricter credit control and expedite collections to maintain a "healthy cash flow" and avoid liquidity strain.

• Asset Utilization Review:
  Assess the fixed asset base for efficiency. Consider reinvesting in essential equipment or technology to support service delivery and prevent operational decline.

• Cost Control and Expense Monitoring:
  Maintain tight control over expenses and monitor liabilities to keep the working capital balance strong. Avoid accumulation of short-term debts that could impair liquidity.

• Growth Strategy:
  Explore opportunities to expand patient base or services to increase turnover and rebuild asset levels, ensuring sustainable long-term financial health.

• Regular Financial Monitoring:
  Continue regular reviews of financial statements to catch early signs of distress, akin to routine health check-ups. Early intervention can prevent minor issues from becoming major problems.

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