CMC HEALTH UK LIMITED

Executive Summary

CMC Health UK Limited is a micro-sized private company with a positive but very limited equity base and manageable short-term liabilities. The emergence of long-term creditors and continued low net assets warrant caution on solvency and liquidity resilience. Operationally, the company depends heavily on a single director/employee, which may present continuity risks in the human health sector. Overall, the company shows regulatory compliance but requires further investigation into financial and operational sustainability before investment.

CMC HEALTH UK LIMITED - Analysis Report

Company Number: SC708614

Analysis Date: 2025-07-29 13:42 UTC

1. Risk Rating: MEDIUM
   The company shows positive net current assets and modest net assets, indicating some solvency. However, the very low net asset base (£241 at year-end 2024) and presence of creditors due after one year (£991) raise concerns about long-term financial resilience. The company is micro-sized and has only one employee (the director), which limits operational scale and may pose sustainability risks.

2. Key Concerns:

• Low Equity Base: Net assets have decreased sharply from £2,926 in 2021 to just £241 in 2024, which suggests erosion of capital and limited buffer against financial shocks.
• Long-Term Creditors: The introduction of £991 in non-current liabilities in 2024, without a corresponding increase in assets, may strain liquidity and solvency if not carefully managed.
• Single Employee Dependence: The company operates with only one employee (the director), which could affect operational stability and continuity, particularly in a human health service business.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains a positive working capital position (£1,232 in 2024), indicating it can cover short-term liabilities currently due.
• Compliance with Filing Deadlines: Both accounts and confirmation statements are filed on time with no overdue notices, indicating regulatory compliance and governance discipline.
• Ownership and Control: The sole director and 75-100% shareholder is the same individual, which may facilitate swift decision-making and control over company affairs.

4. Due Diligence Notes:

• Review the nature and terms of the long-term creditors (£991) introduced in 2024 to assess repayment risk and impact on cash flow.
• Investigate the reasons for the significant decline in net assets since 2021, including any losses or distributions not visible due to limited micro-entity disclosures.
• Assess the business model and revenue streams for sustainability given the micro company scale and single employee structure, especially in the health sector.
• Confirm whether there are any contingent liabilities or commitments not disclosed in the micro-entity accounts.
• Consider the director’s background and capability to manage and grow the company given the operational reliance on one person.