PARSMEDIX LIMITED

1. Risk Rating: HIGH

While the company is currently active and filing on time, the risk rating is HIGH due to persistent balance sheet insolvency. The company's total liabilities consistently exceed its total assets, resulting in negative net assets. This structural deficit means the company is technically insolvent on a balance sheet basis and is entirely reliant on the continued forbearance of its creditors, who are likely related parties, to continue as a going concern.

2. Key Concerns

• Balance Sheet Insolvency: According to the latest filed accounts text, the company has negative net assets of £(14,991) as of March 31, 2025 (and £(14,171) in 2024). Note: The financial history summary data presents these as positive figures, but the primary filed accounts text clearly denotes capital and reserves in parentheses, indicating negative equity. With share capital at only £1, the company has accumulated significant losses.
• Debt Dependency and Long-term Liabilities: The company holds £26,116 in creditors falling due after more than one year, dwarfing its share capital and retained earnings. Given the micro-entity nature and single employee, this long-term debt is highly likely a director's loan. The company's continuation is entirely dependent on this loan not being called for repayment.
• Stagnant Asset Base: Current assets remained completely flat at £14,924 between 2024 and 2025. This lack of growth, combined with consistent net losses over time, raises concerns about the underlying profitability and commercial viability of the business operations.

3. Positive Indicators

• Positive Working Capital: Despite the overall negative net assets, the company maintains positive net current assets of £11,125 (Current assets of £14,924 minus current liabilities of £3,799). This indicates the company can meet its short-term (under one year) financial obligations as they fall due.
• Regulatory Compliance: The company is up to date with its filing requirements at Companies House. Accounts and confirmation statements are not overdue, and there are no signs of disqualification orders or formal insolvency proceedings against the director.
• Operational Longevity: Incorporated in 2012, the business has operated for over a decade. This longevity suggests a stable, albeit small-scale, operation that has managed to survive despite a thin capital base.

4. Due Diligence Notes

• Nature of Long-term Creditors: It is imperative to confirm the composition of the £26,116 long-term debt. If this is a director's loan, formal loan agreements or a waiver of repayment should be requested to ensure the funds are not withdrawn precipitously.
• PSC Discrepancy: There appear to be duplicate PSC entries for the same individual (Dr. Mohammed/Mohammad Kazem Amini) with overlapping ownership thresholds (>75% shares and voting rights), alongside Miss Saeideh Amini. This raises a minor data quality issue and creates ambiguity regarding the actual distribution of control; the register should be clarified and updated.
• Composition of Current Assets: An investor should determine whether the £14,924 in current assets is held as cash or tied up in trade debtors. If largely in debtors, the real liquidity position is weaker than the balance sheet suggests, depending on the collectability of those debts.
• Going Concern Assurance: Given the negative net assets, any institutional engagement would require explicit written confirmation from the director regarding the company's ability to trade out of its position and a commitment not to call in the long-term debt for the foreseeable future.