MARDICO UK SERVICES LIMITED

Executive Summary

MARDICO UK SERVICES LIMITED maintains strong liquidity and solvency but faces a critical challenge with a steep decline in turnover in 2024, indicating business distress. Profitability remains positive, supported by non-operating income and minimal costs, but this is unlikely sustainable long-term. Immediate focus should be on revenue recovery and strategic alignment to restore financial vitality and ensure healthy growth.

MARDICO UK SERVICES LIMITED - Analysis Report

Company Number: 13778722

Analysis Date: 2025-07-29 19:33 UTC

Financial Health Assessment Report: MARDICO UK SERVICES LIMITED

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1. Financial Health Score: C

Explanation:
The company shows a stable but cautious financial profile typical of a micro-entity in early-stage development. While liquidity and net assets are healthy, the significant drop in turnover in 2024 compared to previous years signals symptoms of distress. The score reflects a moderate financial condition requiring attentive management to restore growth and profitability.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Turnover	£8,160	Sharp decline (from £110,700 in 2023). Indicates revenue stress or business contraction.
Profit for the Period	£8,124	Positive profit despite low turnover; suggests cost control or other income support.
Current Assets	£87,801	Strong liquidity buffer; healthy cash/debtors.
Current Liabilities	£39,115	Manageable short-term obligations; net working capital positive at £48,686.
Net Assets	£49,278	Solid equity base; company is solvent.
Staff Costs	£0	No staff costs in 2024; possible operational changes or outsourcing.
Depreciation	£600	Low asset base consistent with micro size.
Tax on Profit	£2,046	Tax paid reflects taxable profits; company not in loss carry-forward.
Employee Count	1	Very small workforce; lean operating model.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity & Solvency:
  The company exhibits a "healthy cash flow" profile with significant current assets compared to current liabilities. The net current assets of nearly £49k and net assets of £49k indicate good short-term financial stability and solvency. The business can cover immediate debts without strain.

• Revenue & Operational Health:
  The dramatic drop in turnover from £110,700 (2023) to £8,160 (2024) is a clear "symptom of distress." Causes could include loss of customers, market downturn, or strategic pivot. Despite this, the business made a modest profit in 2024, likely supported by "other income" (£6,451) and zero staff costs, which may suggest reduced operational activity or restructuring.

• Cost Structure & Profitability:
  Minimal staff costs and low depreciation show a lean cost base. Profitability in 2024, despite low sales, is unusual and indicates reliance on non-operating income or one-off gains. The company must investigate sustainability of profits if turnover remains depressed.

• Asset Base:
  Fixed assets are minimal (£600), typical for a micro company, suggesting the business is service-oriented or asset-light. This limits capital expenditure needs but may constrain growth if new investment is required.

• Governance & Control:
  Two directors control the company, with Dr Rachel Ransley holding majority shares and voting rights. Leadership appears stable, with no indications of governance issues or director disqualifications.

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4. Recommendations: Specific Actions to Improve Financial Wellness

1. Revive Revenue Streams:
   Investigate causes of turnover decline and implement targeted sales or marketing strategies to regain clients or enter new markets. Diversify income sources consistent with industry SIC codes (medical practice, management consultancy, food manufacturing).

2. Cash Flow Monitoring:
   Maintain tight control on working capital to ensure liquidity remains stable. Use cash flow forecasting to preempt liquidity gaps, especially if turnover volatility continues.

3. Cost Management:
   Continue lean cost structure but consider investing selectively in staff or technology to support growth. Avoid cutting essential resources that could hamper recovery.

4. Profit Quality Review:
   Analyze the nature of "other income" supporting profits to assess sustainability. Build operational profitability through core business activities rather than one-off gains.

5. Strategic Planning & Diversification:
   Given the varied SIC codes, clarify strategic focus. If multiple activities are pursued, ensure adequate management and financial tracking per segment. Consider aligning operations to the most profitable or scalable sector.

6. Regular Financial Health Checks:
   Conduct quarterly financial reviews to detect early warning signs and adjust strategies timely. Use metrics like turnover trends, working capital ratios, and profit margins as vital signs.

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Medical Analogy Summary

MARDICO UK SERVICES LIMITED currently shows a "stable pulse" with solid liquidity and solvency ("healthy cash reserves and net assets"). However, the "sharp fever" of turnover collapse signals underlying business stress requiring urgent diagnostic attention and treatment. Without intervention to "revive revenue," the company risks "weakening vital signs" that could lead to financial illness. The positive "profit" in 2024 is a "temporary respite" likely due to one-off factors, not sustainable health.

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