Company Number: 13652000

Analysis Date: 2025-07-20 14:11 UTC

1. Risk Rating: MEDIUM

Justification: The company holds substantial fixed assets (£1.79M) relative to its net assets (£38k), indicating a property asset base as expected from its SIC code. However, significant current liabilities (£1.67M) and a small positive net asset figure create a tight solvency position. The micro-entity status limits detailed financial disclosure, and absence of employees suggests a passive property holding structure rather than an operating business.

2. Key Concerns:

• High Level of Current Liabilities: Current liabilities are nearly as large as fixed assets, raising concerns about short-term obligations and potential refinancing risk.
• Limited Liquidity: Current assets are minimal (£5.3k), which combined with high current liabilities, may indicate liquidity stress or dependence on refinancing or capital injections.
• Thin Equity Buffer: Net assets and shareholders’ funds are very low relative to liabilities, indicating limited cushion against asset value declines or unexpected expenses.

3. Positive Indicators:

• Stable Fixed Asset Base: Fixed assets have remained consistent at £1.79M over several years, suggesting asset stability.
• Compliance with Filing Deadlines: Accounts and confirmation statements are filed on time, evidencing good regulatory compliance.
• Clear Ownership Structure: Single controlling shareholder (Medical First Limited) with full control over voting and appointments provides clarity on governance.

4. Due Diligence Notes:

• Review nature and terms of current liabilities: Determine maturity profile and creditor identity to assess refinancing risk.
• Confirm valuation and liquidity of fixed assets: Verify if property valuations are current and realizable.
• Investigate cash flow sources: Understand how the company services liabilities given minimal current assets and no employees.
• Assess related party transactions: Given sole ownership by Medical First Limited, check for intercompany balances or transactions which may affect financial stability.