LOTUS MEDICARE LIMITED

Executive Summary

LOTUS MEDICARE LIMITED shows a sound and solvent financial position as a newly established micro medical practice, with positive working capital and strong equity. The company’s balance sheet reflects no immediate financial concerns, though it is in an early operational phase. Continued focus on cash flow management and strategic growth investment will be essential to sustain and enhance financial health.

LOTUS MEDICARE LIMITED - Analysis Report

Company Number: 15094865

Analysis Date: 2025-07-29 21:00 UTC

Financial Health Assessment: LOTUS MEDICARE LIMITED

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1. Financial Health Score: B

Explanation:
LOTUS MEDICARE LIMITED, a micro-entity operating in general medical practice, demonstrates a solid initial financial footing with positive net assets and healthy working capital. As a newly incorporated company (since August 2023), the financial statements show no signs of distress or financial strain. The B grade reflects a sound start but acknowledges the early stage of operations and limited operational data.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Fixed Assets	1,244	Small investment in long-term assets, typical for a new micro medical practice.
Current Assets	55,131	Shows a healthy level of liquid assets and receivables, indicating good short-term liquidity.
Current Liabilities	27,213	Current obligations are moderate but manageable relative to current assets.
Net Current Assets (Working Capital)	27,918	Positive working capital indicates the company can comfortably meet short-term liabilities.
Net Assets (Shareholders’ Funds)	29,162	Positive equity shows the company is solvent with assets exceeding liabilities.
Average Employees	0	No staff employed yet, possibly owner-operated or early phase of business development.

Interpretation:

• The company exhibits a healthy cash flow position reflected by strong current assets relative to short-term debts.
• The working capital buffer of nearly £28k signals no immediate liquidity issues, akin to a healthy pulse in a patient.
• The modest level of fixed assets is normal for a start-up and does not burden the balance sheet.
• No employees yet means low operating overhead but may also limit operational capacity.

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3. Diagnosis

Overall Financial Condition:
LOTUS MEDICARE LIMITED is in a stable and solvent state, showing no symptoms of financial distress. The balance sheet reflects a well-capitalized start-up with sufficient liquidity to cover obligations. The absence of debt beyond current liabilities and positive net assets suggest a strong foundation.

Symptoms Analysis:

• No signs of financial strain: The company’s current liabilities are less than half of its current assets.
• Healthy capital structure: Equity fully supports the assets, indicating no overreliance on external financing.
• Early stage indicators: Lack of employees and limited fixed assets imply the company is at an initial development stage, which carries typical risks of growth but also opportunities.

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4. Recommendations

To maintain and improve financial wellness, consider the following steps:

1. Monitor Cash Flow Regularly:
   Ensure continued liquidity by forecasting cash inflows and outflows, especially as operations scale and expenses increase.

2. Plan for Growth Investment:
   As the business develops, gradual investment in fixed assets (medical equipment, office space) and hiring staff will be vital. Plan capital expenditures carefully to avoid cash crunches.

3. Revenue Generation Focus:
   Establish a stable patient base or contracts to generate consistent income. Early revenue will strengthen working capital and reduce reliance on owner funding.

4. Maintain Compliance and Reporting:
   Continue timely filing of accounts and confirmation statements to avoid penalties and maintain good standing with Companies House.

5. Consider Insurance and Risk Management:
   Given the medical practice nature, ensure adequate professional indemnity insurance and risk mitigation strategies are in place to protect the company’s financial health.

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