MEDBI LIMITED

Executive Summary

MEDBI LIMITED shows a stable but cautious financial condition, with positive net assets and working capital but low cash reserves and increased long-term debt. Immediate focus on liquidity improvement and debt management is critical to strengthen financial resilience. With prudent management, the company can improve its financial health and sustain growth.

MEDBI LIMITED - Analysis Report

Company Number: 14494410

Analysis Date: 2025-07-29 20:32 UTC

Financial Health Assessment for MEDBI LIMITED (as of 30 November 2024)

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1. Financial Health Score: C

Explanation:
MEDBI LIMITED demonstrates moderate financial stability with some positive indicators but also notable areas of concern. The company has net positive assets and shareholders' funds that have increased year-on-year, indicating some capital retention and growth. However, the presence of significant long-term creditors and low cash reserves relative to liabilities suggests liquidity strain — akin to a patient whose vital signs are stable but showing symptoms of underlying stress.

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2. Key Vital Signs (Core Financial Metrics)

Metric	2024 Value	Interpretation
Cash at Bank	£1,204	Low cash reserves; potential liquidity risk. Healthy cash flow typically requires more accessible cash.
Debtors (Receivables)	£3,025	Stable receivables; may represent unpaid services or invoices outstanding.
Current Liabilities	£0	No current liabilities recorded this year, which is unusual given previous year's £3,244. Possibly reclassified.
Long-Term Creditors	£8,707	Significant long-term debt; equivalent to a chronic condition needing management.
Net Current Assets (Working Capital)	£4,229	Positive working capital, indicating day-to-day operations can cover short-term obligations.
Net Assets (Equity)	£12,936	Positive and increased from £11,386 in 2023, showing growth in net worth.
Shareholders’ Funds	£12,937	Reflects owner’s equity; increased, indicating retained earnings or capital injection.

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3. Diagnosis (What the Numbers Reveal)

• Liquidity Status:
  The company’s cash position has decreased significantly from £4,181 in 2023 to £1,204 in 2024, signaling tighter liquidity. While current liabilities are reported as zero in 2024, the presence of substantial long-term creditors (£8,707) indicates ongoing obligations that could impair cash flow if not managed well.

• Working Capital:
  Positive net current assets (£4,229) indicate the company can meet short-term liabilities with current assets, a healthy sign akin to a patient having stable vital signs for immediate survival.

• Leverage and Debt Profile:
  The increase in long-term creditors from £936 in 2023 to £8,707 in 2024 suggests rising debt levels. This may be due to loans or deferred payments and represents a "chronic condition" that needs close monitoring to avoid financial distress.

• Profitability and Growth:
  The rise in net assets and shareholders’ funds shows the company is accumulating retained earnings or capital, a positive sign of underlying profitability or investment.

• Operational Scale:
  Small scale operation with 1 employee and modest assets suggest a micro or small category company, which aligns with the exemption from audit and the simplified financial reporting.

• Control and Governance:
  The sole director and 100% shareholder is Abiodun Medinat Kuforiji, indicating concentrated control. This can be beneficial for swift decision-making but also concentrates risk.

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4. Recommendations (Actions to Improve Financial Wellness)

• Improve Cash Reserves:
  Take steps to improve cash flow management, such as accelerating debtor collections and controlling expenses. Healthy cash flow is vital to avoid liquidity crises, akin to maintaining good hydration and energy levels in a patient.

• Debt Management Plan:
  Develop a clear plan to manage and possibly restructure long-term creditors to reduce financial strain and interest costs. Consider negotiating payment terms or refinancing to improve debt servicing capacity.

• Regular Financial Monitoring:
  Implement monthly cash flow forecasts and financial reviews to detect early symptoms of distress and respond proactively.

• Increase Operational Efficiency:
  Explore opportunities to expand revenue streams or optimize costs to improve profitability and build a stronger financial buffer.

• Consider Professional Advice:
  Engage with financial advisors or accountants to assess potential tax efficiencies, funding options, and financial strategy aligned with business goals.

• Maintain Compliance:
  Ensure timely filing of accounts and confirmation statements to avoid penalties and maintain good standing.

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