CLINICAL AND MICROBIOLOGICAL ANALYSIS LABORATORY LIMITED

Executive Summary

Clinical and Microbiological Analysis Laboratory Limited possesses a solid financial foundation with significant fixed assets and positive net equity, indicating stability and good solvency. However, its relatively low current assets highlight a need to improve liquidity and cash flow management to ensure operational flexibility. With focused attention on working capital and profitability monitoring, the company can strengthen its financial wellness and support sustainable growth.

CLINICAL AND MICROBIOLOGICAL ANALYSIS LABORATORY LIMITED - Analysis Report

Company Number: 12789524

Analysis Date: 2025-07-20 14:57 UTC

Financial Health Assessment: CLINICAL AND MICROBIOLOGICAL ANALYSIS LABORATORY LIMITED

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1. Financial Health Score: B

Explanation:
The company shows a strong balance sheet with substantial fixed assets relative to its size, and positive net current assets, indicating a solid financial foundation. However, the limited liquidity and minimal current assets relative to fixed assets suggest some caution. The absence of profitability or income data limits a full diagnosis. Overall, the company is financially stable but with room to improve liquidity and operational cash flow.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Fixed Assets	£500,000	Significant long-term investment, likely property or equipment. Indicates capital-intensive business.
Current Assets	£17,400	Low liquid or short-term assets, suggesting limited cash or receivables on hand.
Net Current Assets	£17,400	Positive but small working capital; company can meet short-term liabilities but with little buffer.
Net Assets / Shareholders' Funds	£517,400	Strong equity base, assets exceed liabilities significantly, indicating good solvency.
Average Employees	9	Small workforce consistent with micro-entity status.
Overdue Filings	No	Compliance with statutory deadlines, indicating good administrative management.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The “vital signs” of this company indicate a body with strong bones (fixed assets) but relatively weak blood flow (current assets and liquidity). The company’s large fixed asset base (£500k) suggests it has invested heavily in long-term resources, which is typical for a specialist medical testing lab. This is a positive sign of capital strength and operational capability.

However, the very low current assets (£17,400) and correspondingly low net current assets mean the company holds limited cash or quickly convertible assets. This could be a symptom of potential cash flow constraints or tight working capital management. Without data on profits or cash flow, it is unclear if the company generates healthy operational cash flow or relies heavily on its capital base.

The steady net assets over the past four years reflect stability, with no signs of erosion in equity, which is reassuring. The company is current on filings and has a steady headcount, showing operational continuity and compliance.

In medical terms, the company exhibits "healthy structural integrity" but may show "symptoms of circulatory strain" due to limited liquidity. This could warrant monitoring to ensure the company can comfortably meet short-term obligations and invest in growth or unexpected expenses.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Enhance Liquidity: Evaluate cash management practices to increase current assets, such as accelerating receivables collection or managing payables strategically. Consider setting aside a cash buffer to improve short-term financial flexibility.

• Operational Cash Flow Monitoring: Implement detailed cash flow forecasting to detect any potential liquidity crunches early and ensure sustainable day-to-day operations.

• Profit & Loss Transparency: If not already done, produce or review profit and loss statements regularly to assess profitability and operational efficiency. This will aid in diagnosing any underlying issues not visible in balance sheet data alone.

• Asset Utilization Review: Assess the fixed assets for utilization efficiency. Are these assets generating expected income or are some underused? Improving asset turnover can boost overall financial health.

• Growth and Investment Planning: With a solid equity base, the company might consider carefully planned investments or financing to expand capacity or services, improving revenue generation and long-term sustainability.

• Maintain Compliance and Governance: Continue timely filing and strong corporate governance to avoid penalties and maintain stakeholder confidence.

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