MENNAYE MEDICAL LTD

Executive Summary

Mennaye Medical Ltd demonstrates a solid early-stage financial profile with improving net assets, strong liquidity, and positive working capital. The company is well-managed with no audit exemptions or compliance issues, supporting a low-risk credit decision. Approval is recommended with moderate limits and ongoing monitoring of tax obligations and cash flow.

MENNAYE MEDICAL LTD - Analysis Report

Company Number: 14069299

Analysis Date: 2025-07-29 17:54 UTC

1. Credit Opinion: APPROVE. Mennaye Medical Ltd is a recently incorporated private limited company (April 2022) engaged in specialist medical practice activities. The company is active, compliant with filing deadlines, and shows positive net assets and working capital in its latest accounts. The directors have demonstrated sound financial stewardship by maintaining liquidity and increasing net assets in the latest financial year. There is no indication of financial distress or director misconduct. The company’s ability to service short-term liabilities is supported by a strong cash position. Given its small scale and early stage, credit limits should be moderate with monitoring.

2. Financial Strength: The company’s balance sheet shows an improving financial position. Net assets increased substantially from £2,886 in September 2023 to £29,885 in September 2024, reflecting retained profits. Current assets rose from £8,496 to £42,790, mainly driven by cash increasing from £8,496 to £40,466. Current liabilities also increased but remain manageable at £12,905. The company has no long-term liabilities reported, indicating a clean debt profile. Shareholders’ funds comprise a small amount of share capital (£100) and accumulated reserves, evidencing equity financing with reinvested earnings.

3. Cash Flow Assessment: Liquidity is strong with a current ratio of approximately 3.3x (current assets of £42,790 versus current liabilities of £12,905), signaling good short-term financial health and capacity to meet obligations. Cash on hand is ample at £40,466, which is more than three times the current liabilities, suggesting excellent immediate liquidity. Debtors are minimal (£2,324), indicating limited credit risk from clients. Working capital is positive at £29,885, providing a buffer for operational needs.

4. Monitoring Points:

• Continued profitability and retention of earnings to sustain and grow net assets.
• Management of corporation tax liabilities which have increased to £10,293; tracking timely payment is essential.
• Cash flow management as the company scales, ensuring liquidity remains sufficient.
• Monitoring any changes in debtor balances or creditor terms that could strain working capital.
• Assessment of business growth and revenue diversification to reduce concentration risk in specialist medical services.
• Watch for any director loans or related party transactions, although current loans from directors are interest-free and modest.