Company Number: 13105308

Analysis Date: 2025-07-20 13:20 UTC

1. Credit Opinion: DECLINE
   MEDREC GLOBAL LTD shows persistent net liabilities with shareholders’ funds deteriorating from -£11,290 in 2022 to -£7,153 in 2023 despite a slight improvement. Current liabilities exceed current assets significantly, indicating ongoing liquidity pressure. The company’s micro-entity status and very limited scale (only 1 employee) suggest modest operations with limited financial flexibility. The absence of profit and loss data due to micro-entity filing limits visibility but the negative net asset position and recurring liabilities raise concerns about the company’s ability to service additional credit facilities reliably.

2. Financial Strength:
   The balance sheet reveals net current assets of £5,098 in 2023, which is an improvement from £309 in prior years. However, this is overshadowed by creditors due after more than one year of £12,252, resulting in net liabilities overall. Total assets less current liabilities are positive at £5,099, but the long-term liabilities push equity into negative territory. The negative shareholders’ funds reflect accumulated losses or funding shortfalls, undermining financial resilience.

3. Cash Flow Assessment:
   The company’s current assets are modest and only marginally exceed current liabilities, indicating tight working capital management. The increase in current assets from £309 to £5,098 is a positive sign, but given the net liabilities position and lack of detailed cash flow statements, liquidity remains a concern. The ability to meet short-term obligations from operational cash flows appears limited, and reliance on external funding or director loans is likely.

4. Monitoring Points:

• Track changes in net current assets versus current liabilities to assess liquidity trends.
• Monitor changes in long-term creditors and overall net liabilities to evaluate financial stability.
• Request future profit and loss data or cash flow statements to better understand operational performance.
• Observe director conduct and any changes in capital structure or additional funding injections.