LHMC SERVICES LTD

Executive Summary

LHMC Services Ltd demonstrates a stable financial position with positive net assets and timely regulatory compliance despite being a relatively new company. Key risks relate primarily to debtor concentration and the size of long-term liabilities, which warrant further review. Overall, the company presents a low risk profile but requires ongoing monitoring of liquidity and operational performance as it develops.

LHMC SERVICES LTD - Analysis Report

Company Number: 13910282

Analysis Date: 2025-07-29 13:22 UTC

1. Risk Rating: LOW

Justification: LHMC Services Ltd is an active private limited company established in 2022, operating in general medical practice activities. The company has filed up-to-date accounts and confirmation statements without overdue filings. Financial data for the year ended 31 March 2024 shows positive net current assets (£208k) and net assets (£196k), indicating a stable equity position. Although the company carries some non-current liabilities, the overall financial position does not indicate imminent solvency or liquidity risk.

2. Key Concerns:

• Increase in Non-Current Liabilities: The company’s creditors falling due after more than one year decreased from £260k in 2023 to £63k in 2024, which is positive, but the presence of long-term liabilities warrants monitoring, especially given the company’s relatively short operating history.
• Debtor Concentration and Collection Risk: Debtors increased significantly from £303k in 2023 to £461k in 2024, forming a substantial part of current assets. This could indicate potential liquidity risk if collections are delayed or impaired.
• Small Profit Reserves: Profit and loss reserves have increased from £2.4k to £196k over one year, which is encouraging, but the overall equity buffer remains modest relative to total assets, necessitating ongoing monitoring of profitability and capital adequacy.

3. Positive Indicators:

• Timely Filing Compliance: The company has no overdue accounts or confirmation statements, indicating good regulatory compliance and governance.
• Growing Equity Base: The increase in net assets and profit reserves between 2023 and 2024 suggests improving financial performance and retention of earnings.
• Adequate Liquidity Position: Cash balances remain stable around £210k, providing a reasonable cash buffer for short-term obligations.

4. Due Diligence Notes:

• Confirm the age and collectability of trade debtors to assess liquidity risk more precisely.
• Review the nature and terms of the non-current liabilities to understand repayment obligations and covenant risks.
• Obtain profitability details and cash flow statements, as current accounts omit profit and loss statements, limiting full operational risk assessment.
• Verify the company's business model and client base stability given the short operational history and rapid growth in receivables.