DR MK AESTHETICS LIMITED

Executive Summary

DR MK AESTHETICS LIMITED demonstrates strong financial liquidity and a growing equity base, signalling solid financial health. However, reduced fixed assets and increased long-term liabilities suggest areas for cautious monitoring. The company is financially stable but should strategically plan for operational scalability and prudent debt management to ensure sustainable growth.

DR MK AESTHETICS LIMITED - Analysis Report

Company Number: 13826971

Analysis Date: 2025-07-20 12:41 UTC

Financial Health Assessment for DR MK AESTHETICS LIMITED (as of 31 January 2025)

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1. Financial Health Score: B

Explanation:
The company exhibits strong liquidity and solid net asset growth, indicating a generally healthy financial status. However, some caution is warranted due to relatively low fixed assets and no recorded employees, which may suggest reliance on director-led operations or outsourcing. The absence of an audit (permitted for micro-entities) limits external financial scrutiny.

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2. Key Vital Signs

Metric	Value (2025)	Interpretation
Fixed Assets	£6,668	Represents long-term assets; relatively low and declining, possibly indicating limited capital investment or asset disposals.
Current Assets	£155,042	Healthy cash and short-term assets, more than doubled from prior year, indicating strong liquidity ("healthy cash flow").
Current Liabilities	£27,459	Short-term debts increased but manageable, current ratio favorable (Current Assets/Current Liabilities ≈ 5.6x).
Net Current Assets (Working Capital)	£127,583	Strong positive working capital, vital sign of good operational liquidity.
Total Assets Less Current Liabilities	£134,251	Indicates overall asset strength after short-term debts.
Long-Term Liabilities	£29,335	Increased significantly from previous year, potential symptom of increased borrowing or deferred payments.
Net Assets / Shareholders’ Funds	£103,716	Strong equity base, nearly doubled from prior year, signaling retained earnings or capital injection.
Share Capital	£20	Minimal nominal share capital, common for micro-entities.
Average Employees	Nil	No employees recorded; may indicate a one-person operation or outsourcing, which could affect scalability.

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3. Diagnosis

The financial "vital signs" of DR MK AESTHETICS LIMITED reflect a business with a very healthy liquidity position and a growing equity base, which are positive indicators of financial wellness. The substantial increase in current assets (likely cash or receivables) combined with controlled current liabilities suggests sound cash management and operational efficiency — akin to a patient with strong pulse and stable blood pressure.

However, the notable decrease in fixed assets might be a symptom of divestment or lack of reinvestment in long-term resources, which could impact future capacity or asset-backed borrowing ability. The increase in long-term liabilities, while not alarming, suggests the company may have taken on more debt, which should be monitored to avoid stress on future cash flow.

The absence of employees points to a lean operational model, possibly relying heavily on the director or subcontracted services. While this can keep costs low, it may also limit growth or create operational bottlenecks.

Overall, the company appears financially stable and solvent, but with some "symptoms" that require monitoring to ensure sustainable growth and operational resilience.

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4. Recommendations

• Monitor Debt Levels: Keep a close eye on long-term liabilities to ensure that increased borrowing does not strain future cash flows. Consider strategies to reduce debt or refinance on favorable terms.

• Asset Investment Strategy: Evaluate the need to invest in fixed assets to support business growth or service capacity. Consider whether asset disposals have been strategic or a sign of underinvestment.

• Operational Capacity: Assess the risks and scalability challenges of having no employees. If growth is anticipated, plan for hiring or structured outsourcing to maintain service quality and prevent operational fatigue.

• Cash Flow Management: Maintain rigorous cash flow forecasting to sustain the strong liquidity position and avoid surprises.

• Governance and Compliance: Although exempt from audit, consider voluntary financial reviews or external advisory to enhance financial oversight and stakeholder confidence.

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