Company Number: 14471229

Analysis Date: 2025-07-29 15:06 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Medaid Ltd is a newly incorporated small private limited company operating in the human health sector (SIC 86900). The company shows a positive net current asset position (£4,163) and shareholders’ funds of the same amount, indicating initial capital adequacy. However, the company’s trading history is limited to just over one year with no reported turnover or profitability figures available. The director is also the sole shareholder and is professionally qualified, which suggests competent management but also concentration risk. Given the limited financial history and modest working capital, credit exposure should be limited and closely monitored.

2. Financial Strength:
   The balance sheet as at 30 November 2023 shows total current assets of £16,538, predominantly cash (£16,080), and current liabilities of £12,375 mainly comprising taxation and social security liabilities (£11,175). There are no fixed assets. Shareholders’ funds stand at £4,163, reflecting the company’s retained earnings plus the nominal share capital of £100. The absence of long-term liabilities and positive net assets is a good starting point but the small equity base and limited operating history constrain financial strength.

3. Cash Flow Assessment:
   Cash holdings of £16,080 are adequate to cover immediate short-term liabilities of £12,375, giving a current ratio above 1.3x and a positive working capital position. However, the high tax and social security creditor suggests the company has outstanding liabilities which need to be managed carefully. Without income statement data, it is unclear if the company is generating sufficient cash flow from operations to sustain ongoing obligations. The liquidity position appears stable for now but requires ongoing assessment as trading develops.

4. Monitoring Points:

• Future turnover and profitability trends to assess sustainable cash generation.
• Timely payment of tax and social security liabilities to prevent enforcement action.
• Any increases in current liabilities or deterioration of working capital.
• Director’s ability to inject additional capital if required.
• Potential concentration risk due to a single director/shareholder and sector exposure.