MIDLANDS MEDICAL LTD

Executive Summary

Midlands Medical Ltd is a newly incorporated medical practice company showing compliance with statutory requirements and some asset growth. However, its recent negative working capital and increased current liabilities raise medium-level concerns around liquidity and short-term financial stability. Further due diligence on cash flow management and operational viability is recommended before investment consideration.

MIDLANDS MEDICAL LTD - Analysis Report

Company Number: 14808926

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: MEDIUM
   While Midlands Medical Ltd is currently active and compliant with filing deadlines, its financial position shows warning signs related to liquidity and working capital that warrant cautious monitoring.

2. Key Concerns:

• Negative Net Current Assets in 2025: The company reported net current liabilities of £380 in the latest year, indicating potential short-term liquidity stress. This contrasts with a positive net current assets position of £137 in the prior year, suggesting deterioration.
• Increase in Creditors and Tax Liabilities: Current liabilities rose to £1,979 from £1,708 year-on-year, with a notable increase in taxation and social security creditors (£729 vs £196). This could indicate delayed payments or cash flow constraints.
• Limited Scale and Capitalization: As a micro-sized company incorporated in 2023 with only £1 share capital and a single director, the business has minimal equity buffer to absorb operational or financial shocks.

3. Positive Indicators:

• Compliance and Governance: No overdue filings or overdue accounts, indicating good regulatory compliance and governance practices.
• Asset Growth: Tangible fixed assets increased substantially (£548 vs £30), implying investment in operational capability or equipment.
• Ownership and Control: Clear single controlling shareholder/director (Mr. Danny Craig Lambert) with professional background as a paramedic, which aligns with the medical practice SIC codes.

4. Due Diligence Notes:

• Investigate reasons behind the shift to negative working capital and rising liabilities, particularly tax and social security payables. Assess whether this is a timing issue or a sign of cash flow problems.
• Review turnover and profitability trends (not disclosed here) to understand revenue generation versus expense structure.
• Verify the nature of "other debtors" (£524) and assess collectability, given the absence of trade debtors in 2025.
• Clarify the company's business model and contracts to evaluate sustainability and growth prospects.
• Confirm whether the asset additions (computer equipment) are aligned with expected business development or represent a one-off capital expenditure.