MUSTAFA MEDICAL SERVICES LTD

Executive Summary

Mustafa Medical Services Ltd exhibits strong initial financial health with positive working capital and equity, reflecting a stable foundation for a new medical practice. While the company is currently well-positioned, establishing robust profitability tracking and cash flow management will be critical to sustaining growth and navigating the challenges typical of healthcare startups. Continued adherence to compliance and governance will underpin future financial wellness.

MUSTAFA MEDICAL SERVICES LTD - Analysis Report

Company Number: 15085512

Analysis Date: 2025-07-29 19:38 UTC

Financial Health Assessment: Mustafa Medical Services Ltd

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1. Financial Health Score: B

Explanation:
Mustafa Medical Services Ltd shows a sound financial foundation typical of a micro-entity in its first year of operation. The company exhibits positive net current assets and net assets, indicating a stable liquidity position and equity base. The score of B reflects a generally healthy financial state but with limited operating history and scale, meaning there is room to strengthen resilience, especially considering typical risks faced by new medical practices.

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2. Key Vital Signs

Metric	Value	Interpretation
Current Assets	£36,049	Healthy level of short-term resources, including cash and receivables, supporting day-to-day operations.
Current Liabilities	£13,475	Obligations due within one year; manageable relative to current assets.
Net Current Assets (Working Capital)	£22,574	Positive working capital suggests liquidity is sufficient to cover short-term debts— a vital sign of good health.
Net Assets (Equity)	£19,074	Represents the owner's stake in the company; positive and growing equity indicates retained value.
Shareholders' Funds	£19,074	Same as net assets; all equity owned by the director, indicating full control and commitment.
Number of Employees	2	Small workforce appropriate for a micro company; implies lean operations.
Exemption from Audit	Yes	Typical for micro companies, reducing administrative burden but limiting external financial scrutiny.

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3. Diagnosis

The financial "vitals" of Mustafa Medical Services Ltd indicate a company in good initial health. The positive net current assets and net assets reveal that the company has more short-term assets than liabilities and a solid equity position, akin to a patient with a strong pulse and stable blood pressure — clear signs of financial well-being.

The company is a micro-entity operating in general medical practice, with a single director who is also the sole significant controller, showing focused governance and ownership. The low number of employees and micro account filing status suggest a small, manageable scale of operations, which is typical for a startup medical service.

There are no signs of financial distress such as negative working capital or high debt levels. The absence of an audit requirement aligns with the small size but also means less external verification of financial data. The accounts do not include a profit and loss statement publicly, so profitability and cash flow trends cannot be fully assessed, representing a limitation in the diagnostic.

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4. Recommendations

• Maintain Healthy Liquidity: Continue monitoring working capital closely to ensure operational expenses can be met comfortably, especially if patient volumes or expenses increase.
• Build Profitability Tracking: Implement internal financial controls to track revenues and expenses regularly to build a profitability profile and detect early symptoms of financial strain.
• Plan for Growth: As the company grows, consider moving beyond micro-entity reporting to more detailed accounts to support funding, partnerships, or expansion.
• Cash Flow Management: Given healthcare service seasonality and billing cycles, establish cash flow forecasts to anticipate lean periods and avoid any liquidity crunch.
• Governance and Compliance: Maintain good corporate governance practices, including timely filing of accounts and confirmation statements, to avoid regulatory penalties.
• Risk Management: Consider professional indemnity insurance and risk assessments specific to medical practice to protect against operational liabilities.

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