MODULUS MEDICAL CONSULTING LIMITED

Executive Summary

MODULUS MEDICAL CONSULTING LIMITED shows significant financial deterioration over the latest year with negative working capital and a sharp drop in net assets, raising concerns about its ability to meet short-term obligations. Despite experienced directors and an active status, the liquidity stress and weak balance sheet suggest credit extension is high risk at this time. Continuous monitoring of cash flow improvements and capital support is essential before reconsidering credit approval.

MODULUS MEDICAL CONSULTING LIMITED - Analysis Report

Company Number: 12397172

Analysis Date: 2025-07-20 18:56 UTC

1. Credit Opinion: DECLINE
   The company’s latest financials indicate a sharp deterioration in liquidity and working capital, with net current liabilities of £32,412 as at 31 January 2025, down from net current assets of £60,154 the prior year. This signals a potential short-term cash flow crisis and raises concerns about the ability to meet short-term obligations and service any new credit facilities. Although the company is active with experienced directors, the steep decline in net current assets and overall net assets (from £68,564 to £10,390) within one year suggests significant financial stress. Without clear evidence of an imminent recovery or additional capital injection, extending credit would pose elevated risk.

2. Financial Strength:
   The balance sheet shows fixed assets increased to £42,802 in 2025 from £8,410 in 2024, but current assets plunged from £63,729 to £3,720. Creditors due within one year rose substantially from £13,022 to £50,772. The company’s net assets dropped drastically, indicating erosion of equity and financial buffer. The micro-entity size limits its scale and resource base, and the small share capital of £100 provides little cushion. Overall, the company lacks financial resilience, with a fragile capital structure and overextended short-term liabilities.

3. Cash Flow Assessment:
   The negative net current assets position highlights working capital deficiency and potential difficulty in covering immediate liabilities. The large increase in current liabilities without a corresponding rise in current assets implies cash flow pressure or delayed receivables. Prepayments and accrued income rose, but this does not offset the liquidity gap. With only 4 employees and minimal operating scale, operational cash generation appears insufficient to cover creditor demands. The company may be dependent on external financing or capital injections to maintain solvency.

4. Monitoring Points:

• Monitor monthly cash flow and short-term liquidity ratios closely.
• Track recovery in current assets and reduction of creditors due within one year.
• Watch for any further capital injections or director loans reported in future filings.
• Review subsequent accounts and management commentary for turnaround strategy and profitability trends.
• Keep an eye on trade creditor payment patterns and any late payment notifications.