Company Number: 13911092

Analysis Date: 2025-07-20 17:00 UTC

Financial Health Assessment for MR P PORTER LIMITED

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1. Financial Health Score: B

Explanation:
MR P PORTER LIMITED demonstrates a solid financial foundation with strong net current assets, positive net assets, and growing equity over the last two years. The company operates within the micro entity category and shows healthy balance sheet growth. However, as a very small company with limited fixed assets and a single employee (the director), it is vulnerable to operational risks and lacks diversification. The absence of audit and limited disclosure on profitability restricts a fuller assessment. Overall, the company is financially stable but should monitor cash flow and operational scalability carefully.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	1,189	Very low fixed assets, typical for a micro medical practice; indicates minimal investment in long-term assets.
Current Assets	244,139	Healthy level of short-term assets, likely including cash and receivables; suggests good liquidity.
Current Liabilities	40,029	Manageable short-term obligations; less than 20% of current assets, indicating good short-term financial health.
Net Current Assets	204,110	Strong working capital; "healthy cash flow" buffer to cover liabilities and operational needs.
Net Assets (Equity)	203,966	Positive net assets reflecting retained earnings or initial capital; indicates solvency and shareholder confidence.
Shareholders’ Funds	203,966	Equity fully supporting the assets; no significant debt leverage noted.
Employee Count	1	Sole operator (director), limiting operational capacity but reducing payroll liabilities.

• Growth Trends: Net assets increased from £87,272 in 2023 to £203,966 in 2024 — a substantial improvement suggesting profitability or capital injection.
• Liquidity: Strong liquidity indicated by current assets exceeding current liabilities by over 5 times.
• Leverage: No long-term debt or material liabilities reported; low financial risk.

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3. Diagnosis

The financial "vital signs" of MR P PORTER LIMITED indicate a company in good health with a robust liquidity position and positive equity growth. Its "symptoms" include:

• Strong Working Capital: The company has ample short-term resources to meet obligations, indicating no immediate cash flow distress.
• Equity Growth: Nearly doubling net assets in one year suggests profitable operations or additional capital contributions.
• Low Fixed Asset Base: Typical for a service-based medical practice; no signs of large capital expenditure pressures.
• Single Director Operation: The sole employee/director model reduces overhead but concentrates business risk and operational continuity on one individual.
• No Audit Requirement: As a micro entity, the company is exempt from audit, but this limits external assurance on financial accuracy.

There are no "symptoms of distress" such as negative equity, liquidity crunch, or rising debt levels. The company appears solvent and financially stable, with prudent management of current liabilities and assets.

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4. Recommendations

To maintain and improve financial wellness, the following actions are advised:

1. Maintain Healthy Cash Flow: Continue monitoring receivables and payables closely to sustain the strong net current asset position, ensuring liquidity remains "in the green."

2. Build Reserves and Profitability Visibility: Though exempt from audit, consider preparing internal profit and loss statements to track operational profitability and identify cost-saving opportunities.

3. Diversify Operational Capacity: Given reliance on one director, consider planning for contingencies such as temporary assistance or partnerships to mitigate operational risk.

4. Plan for Growth Carefully: If expanding, evaluate whether investment in fixed assets or staff is needed, and how this will impact working capital and cash flow.

5. Compliance and Governance: Keep up-to-date with filing deadlines and maintain clear records to avoid penalties and ensure transparency.

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