DOUGLAS MEDICAL SERVICES LIMITED

Executive Summary

Douglas Medical Services Limited exhibits robust financial health characterized by strong liquidity, positive working capital, and consistent growth in net assets. The company enjoys a "healthy cash flow" position with ample resources to meet short-term obligations and sustain operations. Maintaining vigilant cash flow management and exploring strategic reinvestment can further enhance financial wellness and support future growth.

DOUGLAS MEDICAL SERVICES LIMITED - Analysis Report

Company Number: 12813704

Analysis Date: 2025-07-29 20:23 UTC

Financial Health Assessment of Douglas Medical Services Limited (As of 31 August 2024)

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1. Financial Health Score: A-

Explanation:
Douglas Medical Services Limited demonstrates a strong financial position with robust liquidity and improving net asset growth. The company shows a healthy cash balance, positive working capital, and consistent net asset increases year-over-year. Minor caution is warranted due to modest debtor balances and relatively low fixed asset base, but overall the financial "vital signs" indicate a well-managed business with strong financial stamina.

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2. Key Vital Signs and Interpretation

Vital Sign	Value (2024)	Interpretation
Cash at Bank	£107,320	Excellent liquidity; "healthy cash flow" buffer
Current Assets	£113,474	Strong short-term resource base
Current Liabilities	£20,885	Manageable short-term obligations
Net Current Assets	£92,589	Positive working capital; good short-term health
Net Assets (Equity)	£93,969	Solid financial foundation; equity growth since incorporation
Share Capital	£100	Minimal paid-in capital; primarily built up reserves
Debtors (Trade + Other)	£6,154	Moderate receivables; timely collection important
Fixed Assets (Net)	£1,703	Low investment in tangible assets; typical for a specialist medical practice
Retained Earnings	£93,869	Strong profit reinvestment and reserves
Current Ratio (Current Assets / Current Liabilities)	5.44	Very strong liquidity ratio; healthy ability to cover liabilities

Trend Notes:

• Cash and net assets have increased significantly over the past four years, indicating consistent profitability and cash flow management.
• Debtors have decreased, which may indicate improved collection efficiency or reduced credit sales.
• Current liabilities have decreased, reducing short-term financial strain.

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3. Diagnosis: Financial Condition Summary

Douglas Medical Services Limited is in a financially healthy condition with the following observations:

• Liquidity is strong, with cash holdings exceeding current liabilities by a large margin, indicating a "healthy cash flow" situation that supports operational stability and the ability to meet immediate financial obligations without stress.
• Working capital is positive and growing, showing the company has sufficient resources to fund day-to-day operations and absorb short-term shocks.
• Net asset growth since inception points to retained profits and increasing shareholder value, reflecting sound business performance and prudent financial management.
• The low level of fixed assets is typical for a medical consultancy where intellectual capital and services dominate over physical assets.
• The company maintains a modest capital base but has built substantial reserves, suggesting reliance on operational earnings rather than external capital injections.
• Debtors are moderate relative to cash, indicating that while some credit is extended, it is controlled and not excessive.

No symptoms of financial distress or liquidity constraints are evident. The company's financial "vital signs" suggest a stable and well-managed business.

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4. Recommendations: Actions to Enhance Financial Wellness

• Maintain strong cash flow management: Continue monitoring debtor collections to avoid cash flow "blockages" and preserve liquidity.
• Evaluate debtor terms: Consider tightening credit terms or accelerating invoicing cycles to further reduce debtor days and enhance cash availability.
• Consider modest reinvestment in fixed assets: If operationally justified, reinvesting in new medical equipment or technology could support service quality and future growth.
• Build capital reserves prudently: Although reserves are healthy, consider maintaining a balance between retained earnings and potential dividends or owner draws to optimize shareholder returns.
• Prepare for growth opportunities: With strong liquidity, the company is well-positioned to invest in expansion, marketing, or additional medical services, so strategic planning for growth is advisable.
• Regular financial reviews: Continue performing periodic financial health checks to detect early any "symptoms" of financial stress or market changes.

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