NUCARE GROUP LTD

Executive Summary

NUCARE GROUP LTD shows a positive financial recovery and growth trajectory with strong liquidity and increasing net assets, reflecting sound financial management and operational scaling. The company’s financial health is rated as good (Grade B), but ongoing attention to cash flow and asset utilization will be essential to sustain this healthy position as it grows. Maintaining robust working capital and considering strategic financial planning will help ensure continued financial wellness.

NUCARE GROUP LTD - Analysis Report

Company Number: 12832326

Analysis Date: 2025-07-29 17:27 UTC

Financial Health Assessment for NUCARE GROUP LTD

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1. Financial Health Score: B

• Explanation: NUCARE GROUP LTD demonstrates a solid improvement in financial health over recent years. The company shows positive net current assets, steadily growing shareholders’ funds, and increased fixed and current assets. While it is a micro-entity with relatively modest scale, the upward trajectory and positive working capital indicate generally healthy financial "vital signs." The absence of audit requirements is typical for micro companies but means less external validation. Overall, the company is financially sound but still in a growth phase and should continue to monitor liquidity and asset management closely.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	18,124	Moderate investment in long-term assets, increased from prior years, indicating asset growth.
Current Assets	83,686	Healthy level of liquid and short-term assets, more than doubling from 2023.
Current Liabilities	49,468	Obligations due within a year; manageable given current assets.
Net Current Assets (Working Capital)	34,218	Positive and growing working capital, a sign of good short-term financial health.
Total Assets Less Current Liabilities	52,342	Reflects net asset value; more than doubled since last year, indicating strengthening equity.
Shareholders Funds	52,342	Equity backing the company’s assets; growth reflects retained earnings or capital injections.
Number of Employees	26	Company expanded from zero employees last year, indicating operational growth.
Share Capital	2.00	Minimal nominal capital, typical for micro-entities; majority ownership by Nucare Empire Ltd.

Interpretation:

• Working Capital: The company has a "healthy cash flow environment" as indicated by positive net current assets, meaning it can comfortably cover its short-term debts.
• Growth in Assets and Equity: The doubling of shareholders’ funds and total assets less liabilities signals reinvestment and strengthening of financial foundations.
• Employee Growth: Rapid increase in staff suggests scaling operations, which requires careful cash flow management.
• Ownership Structure: Majority control by a parent company shows consolidated ownership, potentially providing financial support if needed.

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3. Diagnosis

NUCARE GROUP LTD is exhibiting strong signs of financial vitality, much like a patient recovering well after initial growth pains. The company has moved from a modest position with negative working capital in 2021 to a robust position with a substantial buffer of net current assets in 2024. This suggests effective management of liquidity and operational scaling.

The increasing fixed assets reflect investment in infrastructure or equipment, which should support ongoing service delivery in social work activities without accommodation. The rise in current assets outpaces current liabilities growth, implying the company maintains a comfortable liquidity margin. The positive and growing shareholders’ funds indicate retained earnings or capital injections are strengthening the company's net worth.

There are no indications of financial distress such as excessive liabilities, negative net assets, or overdue filings. The company is compliant with filing deadlines and has not required an audit, consistent with its micro-entity status.

However, as a micro company with a small capital base and rapid operational expansion, it should continue monitoring cash flow carefully to avoid liquidity "symptoms" such as delayed payments or inability to meet short-term obligations.

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4. Recommendations

To maintain and enhance financial wellness, NUCARE GROUP LTD should consider the following:

• Cash Flow Monitoring: Maintain rigorous short-term cash flow forecasting to ensure liquidity remains strong as employee count and operations expand.
• Working Capital Management: Continue to optimize receivables and payables cycles to preserve positive net current assets, avoiding any "cash flow distress."
• Asset Utilization Review: Regularly assess fixed assets to ensure they contribute effectively to operational efficiency and do not become idle or obsolete.
• Capital Structure Review: Although current share capital is minimal, consider whether additional equity or retained earnings reinvestment is appropriate to support growth and buffer against unforeseen liabilities.
• Financial Reporting: While audit exemption is permitted, consider voluntary external review or enhanced internal controls to build stakeholder confidence as the company grows.
• Strategic Planning: Align financial strategy with business goals, especially focusing on sustainable growth in social work services and managing associated operational costs.

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