MARIAM NAMUYONJO HEALTHCARE LIMITED

Executive Summary

MARIAM NAMUYONJO HEALTHCARE LIMITED exhibits a stable and positive financial position with healthy working capital and growing equity reserves. However, the increasing debtor balance relative to cash suggests a need for stronger cash flow management to avoid liquidity strain. With targeted improvements in receivables collection and cash reserves, the company’s financial health outlook remains positive and sustainable.

MARIAM NAMUYONJO HEALTHCARE LIMITED - Analysis Report

Company Number: 13150998

Analysis Date: 2025-07-29 20:59 UTC

Financial Health Assessment: MARIAM NAMUYONJO HEALTHCARE LIMITED

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1. Financial Health Score: B

Explanation:
The company demonstrates a solid and stable financial position with positive net assets and healthy working capital. While it shows steady growth and no immediate signs of distress, limited cash reserves relative to debtors and no recorded employees may signal operational scaling challenges. The absence of audit and the small scale of operations keep it within a cautious but positive rating.

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2. Key Vital Signs

Metric	Value (2024)	Interpretation
Current Assets	£31,906	Indicates available short-term resources; mostly debtors and some cash.
Cash at Bank	£9,737	Cash "heartbeat" is moderate; sufficient but lower than previous year, indicating some use.
Debtors	£22,169	High receivables relative to cash; potential lag in cash collection which can strain liquidity.
Current Liabilities	£8,809	Short-term obligations due within a year; manageable against current assets.
Net Current Assets	£23,097	Healthy working capital; positive buffer for short-term financial obligations.
Net Assets / Shareholders’ Funds	£23,097	Positive equity position, showing value retained in business and no net debt beyond current liabilities.
Share Capital	£100	Minimal share capital, typical for small private firms.
Profit & Loss Reserve	£22,997	Retained earnings indicate cumulative profitability or reserves.
Employee Count	0	No employees recorded – suggests potentially owner-operated or contract services.

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3. Diagnosis: Financial "Health" of the Company

• Healthy Cash Flow:
  Despite a decrease in cash from £19,718 in 2023 to £9,737 in 2024, the company maintains positive net current assets. This indicates the company has more liquid resources than short-term debts, a critical sign of financial stability in the near term.

• Symptoms of Receivables Concentration:
  The significant increase in debtors (£22,169 from £10,580) compared to cash suggests that a large portion of assets is tied up in amounts owed by customers or clients. This is a symptom of potential cash flow timing issues—if these debts are not collected promptly, the company could face liquidity stress.

• Stable Equity and Profit Reserves:
  The steady increase in net assets from £7,802 in 2021 to £23,097 in 2024 reflects retained profits and a solid equity base, which is the financial “immune system” of the company, providing resilience against shocks.

• No Employees:
  The absence of employees may indicate a business model relying on the director or external contractors. This can reduce fixed overheads but may also limit operational scalability.

• No Audit Requirement:
  Being exempt from audit under the small company regime reduces compliance costs but also limits external scrutiny of financial health.

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4. Recommendations: Prescription for Financial Wellness

1. Improve Cash Collection:

   • Actively manage debtor days to convert receivables into cash faster, ensuring liquidity remains strong. Consider credit control procedures or incentivizing early payments.

2. Cash Reserve Management:

   • Maintain or increase cash reserves to better cushion operational expenses and unexpected outflows, improving the company's financial “heartbeat.”

3. Operational Scaling:

   • If growth is targeted, consider hiring or formalizing workforce arrangements to support increased business activities. This will require careful cash flow planning.

4. Financial Reporting:

   • Although audit exemption is beneficial, consider voluntary periodic external reviews or a management accountant’s assessment to preempt financial risks as the business grows.

5. Monitor Liabilities:

   • Keep current liabilities in check, especially director loans and accrued expenses, to avoid any surprises that could impair short-term liquidity.

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