BPK MEDICAL LTD

Executive Summary

BPK Medical Ltd shows high financial risk primarily due to sustained negative working capital and a low equity base since its recent incorporation. While regulatory filings are current and management appears sector-experienced, limited financial transparency and liquidity concerns warrant closer scrutiny. Further due diligence into cash flows and creditor management is recommended before investment consideration.

BPK MEDICAL LTD - Analysis Report

Company Number: 13951725

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: HIGH
   The company exhibits persistent negative net current assets over the last three reported years, indicating ongoing liquidity issues. The small asset base relative to current liabilities and minimal shareholder funds further heighten solvency risk. Lack of audit and limited financial disclosures under micro-entity provisions limit transparency.

2. Key Concerns:

• Negative Working Capital: Current liabilities consistently exceed current assets by a substantial margin (£8,743 deficit in 2025), signaling potential difficulties in meeting short-term obligations.
• Low Equity Base: Shareholders’ funds remain very low (£5,733 in 2025) despite incorporation in 2022, suggesting limited capital buffer to absorb losses or fund growth.
• Limited Financial Transparency: Filing under micro-entity regime with unaudited accounts restricts insight into detailed financial performance and risk exposures.

3. Positive Indicators:

• Compliance with Filing Deadlines: The company is up to date with both accounts and confirmation statement submissions, indicating regulatory compliance and proper governance on administrative matters.
• Active Directors with Relevant Background: Both directors are practicing doctors, aligned with the specialist medical practice SIC code, implying operational knowledge and experience in the sector.
• Steady Incorporation and Operation: Active status since March 2022 with continuous filings suggests ongoing business activity.

4. Due Diligence Notes:

• Review detailed cash flow statements and bank reconciliations (if available) to assess liquidity management and cash runway.
• Investigate creditor aging and payment terms to understand the cause of large current liabilities and whether overdue balances exist.
• Evaluate revenue streams and profitability trends beyond the balance sheet, given limited P&L disclosure in micro-entity accounts.
• Consider directors’ plans for capital injection or debt restructuring to improve working capital.
• Assess any contingent liabilities or off-balance sheet risks not visible in micro filings.
• Confirm no director disqualifications or regulatory sanctions beyond public records.