ITEMEDICAL LIMITED

Executive Summary

Itemedical Limited exhibits weak financial health with growing negative equity and significant working capital deficits, raising substantial credit risk. Liquidity remains constrained despite increased cash balances, and the company’s ability to meet short-term liabilities is questionable. Credit facilities are not recommended without significant financial restructuring or guarantees.

ITEMEDICAL LIMITED - Analysis Report

Company Number: 14330924

Analysis Date: 2025-07-29 20:43 UTC

1. Credit Opinion: DECLINE
   Itemedical Limited shows significant financial distress with persistent and growing negative net current assets and shareholders' funds, indicating an inability to cover short-term liabilities with current assets. The company’s liabilities more than double from £160,966 in 2023 to £327,886 in 2024, while cash and current assets remain low relative to these obligations. This suggests poor liquidity and potential repayment difficulties. As it is a newly incorporated entity (2022) with limited operating history, the lack of profitability and negative equity raise serious credit risk concerns. The director’s decision to forgo audit and limited disclosure further reduce transparency. Given these factors, credit approval is not recommended at this stage without substantial improvement or additional security.

2. Financial Strength:
   The balance sheet reveals weak financial strength. Negative shareholders' funds of £-269,652 in 2024 (worsened from £-152,276 in 2023) reflect accumulated losses exceeding capital invested. Net current liabilities of £-268,652 indicate working capital deficiency and inability to meet short-term debts when due. Fixed assets are not reported, suggesting the company relies on intangible or current assets only. The increase in creditors from £160,966 to £327,886 within a year without corresponding asset growth highlights poor financial leverage and potential solvency risk.

3. Cash Flow Assessment:
   Cash reserves increased to £50,539 in 2024 from £5,923 in 2023, which is positive; however, this is insufficient to offset the large current liabilities. Debtors increased to £8,695 but remain small relative to payables, indicating limited receivable inflows. The negative net working capital implies the company may struggle to fund day-to-day operations and debt servicing without external support or capital injection. There is no evidence of positive operating cash flow or profitability disclosed, suggesting reliance on shareholder funding or loans.

4. Monitoring Points:

• Monitor quarterly cash flow statements and working capital trends for signs of liquidity improvement or further deterioration.
• Track creditor aging and payment patterns to identify any delays or defaults.
• Review any capital injections or shareholder loans that may strengthen equity and liquidity.
• Watch for turnaround in profitability or operating margins from future financial statements.
• Ensure timely filing of accounts and consider audit if complexity increases for transparency.