HR MEDICAL LIMITED

Executive Summary

HR MEDICAL LIMITED is a young micro-entity exhibiting healthy liquidity and stable equity with no immediate financial distress signs. The company’s positive working capital and compliance with filing requirements indicate good financial discipline. To sustain and improve financial wellness, focus on profitability tracking, cash flow management, and building reserves as the business grows.

HR MEDICAL LIMITED - Analysis Report

Company Number: 14645441

Analysis Date: 2025-07-29 19:00 UTC

Financial Health Assessment Report for HR MEDICAL LIMITED

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1. Financial Health Score: B

Explanation:
HR MEDICAL LIMITED demonstrates a stable financial condition typical of a young micro-entity in its first year of operation. The company shows positive net current assets and net equity, indicating a healthy liquidity position and initial capital backing. However, given its early stage and modest asset base, there is limited financial history to elevate the score higher. The absence of profit and loss data limits deeper profitability analysis.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	9,243	Sufficient short-term resources (cash, receivables) to cover liabilities. Indicates liquidity.
Current Liabilities	5,756	Obligations due within one year, manageable relative to current assets.
Net Current Assets (Working Capital)	3,487	Positive working capital signals operational liquidity and ability to meet short-term debts.
Net Assets (Equity)	3,487	Shareholders' funds indicate initial capital maintained without losses.
Number of Employees	2	Small workforce consistent with micro company status.
Overdue Filings	No	Compliance with filing deadlines indicates good governance and reduces regulatory risk.

Interpretation:

• The positive net current assets are akin to a "healthy pulse" indicating the company can meet its immediate financial obligations without strain.
• Net assets confirm that the business has not yet faced erosion of capital, a "healthy blood pressure" reflecting stable equity.
• The micro-entity status limits extensive financial data but aligns with the company's size and operational scale.
• No overdue filings are a positive "sign of good discipline," reducing risks of penalties or intervention.

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3. Diagnosis

Current Financial Condition:
HR MEDICAL LIMITED is in the early stages of business life with a solid foundation. The balance sheet shows a clean structure with no long-term liabilities, and working capital is positive, which suggests no immediate liquidity distress or solvency issues. The company is maintaining adequate cash and receivables relative to short-term payables, an encouraging "healthy cash flow symptom" for a startup.

Areas of Concern / Limitations:

• Lack of profit and loss data (not filed publicly) means profitability and cash generation capacity are unknown. This is typical for new micro entities but limits deeper insight.
• The company is capitalized modestly with net assets of £3,487, so any unexpected expenses or downturn could strain resources.
• As a new entity (incorporated Feb 2023), it is still in the "growth incubation phase" and must focus on scaling revenue and controlling costs to avoid "symptoms of financial distress" in the future.

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4. Recommendations

1. Maintain Strong Working Capital Management:
   Monitor cash flow closely to keep the "circulatory system" of finances healthy. Ensure receivables are collected promptly and liabilities are managed to avoid cash crunches.

2. Establish Profitability Metrics:
   Although profit and loss accounts are not publicly filed, internally track income and expenses rigorously to detect early "symptoms" of profitability or losses.

3. Build Financial Reserves:
   As the business grows, accumulate retained earnings or inject additional equity to strengthen the "immune system" against unexpected shocks.

4. Prepare for Growth:
   Plan for business scaling by forecasting working capital needs and potential financing. Consider professional financial advice to optimize tax and cash flow strategies.

5. Maintain Compliance:
   Continue timely filings and governance to avoid regulatory stress and maintain credibility with stakeholders and financial institutions.

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