Company Number: 13627648

Analysis Date: 2025-07-20 17:58 UTC

Financial Health Assessment for BODY-MIND DOC LTD (as of 31 August 2024)

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1. Financial Health Score: C

Explanation:
BODY-MIND DOC LTD exhibits signs of financial stability but with noticeable deterioration in key liquidity and net asset metrics over the latest year. The company remains solvent and active, but shrinking net current assets and net assets indicate emerging financial strain that should be closely monitored and addressed.

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2. Key Vital Signs

Metric	2024 (£)	2023 (£)	Interpretation
Fixed Assets	400	600	Minimal, typical for micro medical practice.
Current Assets	149,703	241,314	Sharp decline (~38%), potential cash flow issues.
Current Liabilities	68,726	67,680	Slight increase; short-term debts rising.
Net Current Assets	80,977	173,634	Halved; working capital "vital signs" weakening.
Total Assets less Current Liabilities	81,377	174,234	Significant drop in net assets, indicating "symptoms of distress."
Net Assets (Shareholders’ Funds)	81,377	174,234	Declining equity base; reduced financial cushion.
Average Employees	1	1	Stable headcount, low overheads.

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3. Diagnosis

Current Financial Condition:
BODY-MIND DOC LTD is a micro-entity operating a specialist medical practice with a very lean asset base and minimal fixed assets, which is typical and not concerning. However, the company’s liquidity — represented by net current assets — has deteriorated sharply in the latest financial year. The company's current assets, mainly cash or receivables, have dropped by approximately 38%, while short-term liabilities have increased slightly. This decline signals a weakening in the company’s ability to cover immediate debts and operating needs, akin to a patient whose vital signs are weakening, suggesting potential cash flow constraints.

The net assets and shareholders’ funds have dropped by over 50%, indicating the company has either incurred losses or drawn down reserves significantly. Given the absence of a profit and loss statement in the filings (common in micro-entity accounts), the exact cause is unclear, but the balance sheet changes reveal the "symptom" of financial stress.

The company remains solvent with positive net assets and a positive working capital position, which indicates it is not in immediate danger of insolvency. However, the rapid decline in liquidity and equity is a red flag that warrants attention to prevent future financial distress.

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4. Recommendations

To improve financial wellness and stabilize the company’s "health," consider the following actions:

• Enhance Cash Flow Management:
  Conduct a detailed review of cash inflows and outflows. Accelerate receivables collection and negotiate better payment terms with suppliers to boost liquidity.

• Cost Control:
  Given the small size, scrutinize all operating expenses carefully. Identify any non-essential costs that can be reduced or eliminated to preserve cash.

• Revenue Growth Strategies:
  Explore opportunities to increase patient volume or introduce complementary services to improve the revenue base and rebuild reserves.

• Financial Reporting Transparency:
  Although exempt from audit, consider preparing more detailed internal management accounts, including profit and loss statements, to better diagnose financial performance trends.

• Capital Injection or Financing:
  If liquidity pressures persist, consider a capital injection from shareholders or short-term financing options to shore up working capital and support operations.

• Regular Monitoring:
  Establish monthly financial reviews to catch early symptoms of distress and react promptly.

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