FIRST PLUS MEDICAL LTD

Executive Summary

First Plus Medical Ltd is a very young micro-entity with a weak balance sheet characterized by negative working capital and minimal equity. The company currently lacks the financial strength and liquidity to support new credit facilities. Careful monitoring of future financial performance and cash flow improvements is essential before reconsidering credit extension.

FIRST PLUS MEDICAL LTD - Analysis Report

Company Number: 14720388

Analysis Date: 2025-07-20 15:48 UTC

1. Credit Opinion: DECLINE
   First Plus Medical Ltd is a newly incorporated micro-entity with its first financial year ending March 2024. The balance sheet shows net current liabilities of £36,860, indicating working capital deficiency. The company’s total assets less current liabilities is a modest £14,695, all represented by shareholders’ funds, which is low for credit support. The business has limited trading history and a single employee, reducing visibility on operational stability and cash generation ability. Given the negative net current assets and limited financial track record, the company currently lacks sufficient liquidity and capital buffer to reliably service debt or trade credit. Approval of unsecured credit facilities is not recommended at this stage.

2. Financial Strength:
   The company’s fixed assets (£51,555) exceed current assets (£31,331), suggesting investment in long-term resources, but current liabilities (£68,191) outweigh current assets producing a net current liability position. Shareholders’ funds of £14,695 indicate minimal equity capital. The absence of retained earnings or reserves and a negative working capital position highlight vulnerability in meeting short-term obligations. Overall, the balance sheet is weak with insufficient liquidity and limited financial robustness for external lending.

3. Cash Flow Assessment:
   The negative net current assets position signals potential liquidity strain, as current liabilities exceed short-term assets by £36,860. With only one employee and no reported profit or reserves, cash inflows may be limited. Without detailed cash flow statements, it is presumed cash generation is inadequate to cover immediate liabilities. This raises concerns about operational cash flow sufficiency to support ongoing commitments without additional capital injection or external financing.

4. Monitoring Points:

• Improvement in net current assets and working capital position in subsequent accounts.
• Generation of positive retained earnings and cash flows from operations.
• Changes in capital structure, including additional equity contributions or debt facilities.
• Business growth indicators such as increased employee count, turnover, and profitability.
• Directors’ ability to sustain operations given their backgrounds (non-financial professionals).