EXPERT NEUROIMAGING SERVICES LTD

Executive Summary

Expert Neuroimaging Services Ltd shows a strong financial foundation with healthy cash reserves and positive working capital in its first year of operation, reflecting good initial financial health. While the company maintains solid liquidity and equity, attention should be given to tax management and formalizing director loans to sustain this healthy state. Continued development of financial reporting and operational controls will support future growth and stability.

EXPERT NEUROIMAGING SERVICES LTD - Analysis Report

Company Number: 14780632

Analysis Date: 2025-07-29 19:41 UTC

Financial Health Assessment for Expert Neuroimaging Services Ltd (as of 31 March 2024)

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1. Financial Health Score: B

Explanation:
The company exhibits a solid financial foundation in its first year of operation, reflected by strong net current assets and positive shareholder funds relative to the initial share capital. However, as a newly incorporated business with limited financial history and modest scale, there is inherent uncertainty and risks typical of startups. The score "B" indicates a generally healthy financial state but acknowledges the need for continued monitoring and development.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Cash at Bank	119,739	Healthy cash reserves indicating good liquidity and ability to meet short-term obligations.
Debtors (Amounts Owed)	40,000	Moderate receivables; manageable but requires effective collection management to maintain cash flow.
Current Liabilities	54,031	Short-term debts primarily tax (33,002) and director accounts (19,829); manageable but need to be settled timely.
Net Current Assets	105,708	Strong positive working capital, showing the company can cover its short-term liabilities comfortably.
Shareholders’ Funds (Equity)	105,708	Equity exceeds initial share capital, indicating retained earnings or accumulated profits.
Number of Employees	2	Small team, typical for a micro or small enterprise, limiting operational complexity and overheads.

Additional Notes:

• The company falls under the Total Exemption Full filing category, typical for small companies, and is compliant with filing deadlines—important for regulatory health.
• No audit was required, which is normal for small companies but limits external financial scrutiny.
• The company is active, with no insolvency indicators.

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3. Diagnosis: Financial Health Overview

Liquidity and Cash Flow:
The company’s "healthy cash flow" is demonstrated by substantial cash reserves (£119,739) relative to current liabilities (£54,031). This liquidity cushion is the heart rate of the business, suggesting it can comfortably meet its immediate financial obligations without distress.

Working Capital (Net Current Assets):
With net current assets of £105,708, the company shows excellent short-term financial stamina. This positive working capital is akin to a robust immune system, helping the business withstand financial shocks.

Capital Structure and Equity:
Shareholders’ funds stand at £105,708, substantially above the nominal share capital of £100. This suggests the company has either generated some retained earnings or capital contributions beyond initial share capital, which is a positive sign of internal financial strength.

Financial Risks and Symptoms:

• Tax liabilities (£33,002) are the largest component of current liabilities and should be managed proactively to avoid penalties or cash flow stress.
• Director’s current accounts (£19,829) indicate some internal financing or loans, which need clear arrangements to avoid future liquidity issues.
• Absence of an income statement limits insight into profitability and operational efficiency; the company should ensure robust financial reporting going forward.

Business Maturity:
As a company incorporated less than a year ago, it is still in the early stages of its lifecycle. The "symptoms" here are typical for startups—building a stable customer base, managing receivables, and establishing operational routines.

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4. Recommendations

1. Maintain Strong Cash Management:
   Continue to monitor cash closely, especially ensuring prompt collection of debtor balances (£40,000) to sustain liquidity.

2. Tax Planning and Compliance:
   Proactively manage tax liabilities to avoid surprises. Consider liaising with tax advisors to optimize tax payments and utilize any available reliefs.

3. Formalize Director Loans:
   Clarify terms for director’s current accounts to ensure transparency and avoid future financial strain.

4. Enhance Financial Reporting:
   Move towards more detailed internal financial reports (including profit & loss statements) to better understand operational performance and profitability.

5. Build Reserves for Growth:
   As profits are generated, consider reinvesting to build reserves or fixed assets to support scaling operations.

6. Review Operational Efficiency:
   With only two employees, ensure roles and responsibilities are well defined to maximize productivity and control costs.

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