MOHAMMAD ESMAILI LTD

Executive Summary

MOHAMMAD ESMAILI LTD is a financially healthy, newly incorporated dispensing chemist with strong profitability and liquidity. The company shows robust early-stage financial performance and good governance, positioning it well for sustainable growth. Continued focus on asset development, cash management, and governance will support its financial wellness as it matures.

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Company Analysis

This analysis is opinion only and should not be interpreted as financial advice.

MOHAMMAD ESMAILI LTD - Analysis Report

Company Number: 15006276

Analysis Date: 2025-07-29 14:58 UTC

Financial Health Assessment Report for MOHAMMAD ESMAILI LTD
Assessment Date: April 2025
Accounting Period Reviewed: 17 July 2023 to 31 October 2024 (15 months)


1. Financial Health Score: B

Explanation:
MOHAMMAD ESMAILI LTD demonstrates a strong initial financial position for a newly incorporated private limited company operating in the dispensing chemist sector. The company has generated a healthy operating profit, maintains positive net current assets, and shows no signs of financial distress or overdue filings. The ‘B’ grade reflects solid financial vitality with room for improvement as the business matures and scales.


2. Key Vital Signs

Metric Value (£) Interpretation
Turnover / Gross Profit 50,850 Positive gross profit indicates revenue generation capability.
Operating Profit 42,776 Strong operating profit margin evidences efficient cost control.
Profit After Tax 34,649 Profitability after tax confirms sound bottom-line performance.
Cash at Bank 40,181 Healthy cash balance – vital sign of liquidity and operational flexibility.
Net Current Assets 40,181 Positive working capital signals ability to meet short-term obligations comfortably.
Shareholders’ Funds 40,181 Equity funded, indicating no debt burden – a clean financial slate.
Employee Count 2 Small but stable workforce appropriate for micro/small entity scale.
Filing Status Up to date No overdue accounts or confirmation statements – symptom of good governance.

3. Diagnosis: Financial Condition Analysis

  • Healthy Cash Flow and Liquidity:
    The company’s cash position of £40,181 is robust relative to its size and stage, which is akin to a patient with a strong pulse and good hydration—enabling it to fund operations and cover short-term liabilities without strain.

  • Profitability and Cost Management:
    Operating profit of £42,776 on gross profit of £50,850 demonstrates effective cost control (admin expenses at £8,074). This suggests the business is efficiently converting sales to profit, a positive symptom indicating operational wellness.

  • Balance Sheet Strength:
    Net assets equal to cash holdings with no fixed assets or liabilities means the company currently avoids financial stress from debt or asset depreciation. It’s like a patient with no chronic conditions or underlying ailments.

  • Growth Stage Considerations:
    Established in mid-2023, this company is in its infancy. The financials represent a snapshot of a startup in good health but not yet tested by seasonal fluctuations, larger market pressures, or expansion challenges.

  • Governance and Compliance:
    Up-to-date filings and no director disqualifications reflect good corporate governance, reducing risk of regulatory complications.

  • Risk Factors:

    • Limited asset base may restrict borrowing capacity or investment potential.
    • Concentrated control with a single majority shareholder/director may pose governance risks if not mitigated.
    • Small employee base limits operational scalability without additional hires.

4. Recommendations for Improving Financial Wellness

  • Enhance Asset Base:
    Consider investing in fixed assets or technology infrastructure to support growth and operational efficiency, improving long-term stability.

  • Build Cash Reserves:
    While liquidity is currently good, aim to build cash buffers to absorb unexpected expenses or slower sales periods—like adding a safety net for a patient’s recovery phase.

  • Diversify Leadership and Oversight:
    Introduce additional directors or advisors to strengthen governance, reduce single-person dependency, and bring strategic perspectives.

  • Plan for Growth and Scalability:
    Develop a clear growth strategy including marketing, service expansion, or partnerships to increase turnover and profit sustainably.

  • Maintain Compliance Discipline:
    Continue timely filing and transparent reporting to avoid penalties and maintain stakeholder confidence.

  • Monitor Industry Trends:
    Stay alert to regulatory or market changes in the pharmaceutical retail sector that could impact financial health.



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