Company Number: 14384220

Analysis Date: 2025-07-20 12:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Power-Medix Ltd shows some positive trends in net assets and reduced liabilities compared to prior years, indicating improving financial stability. However, the company consistently reports net current liabilities (negative working capital), which poses liquidity risks. Given its micro entity size and limited operating history (incorporated in 2022), granting credit would require close monitoring and possibly secured or short-term facilities to mitigate liquidity risks. The directors’ stable involvement and lack of adverse records are reassuring but do not fully offset the working capital concerns.

2. Financial Strength:

• Net assets have increased from £3,891 (2024) to £15,377 (2025), reflecting either capital injections or retained profits, strengthening the balance sheet.
• Fixed assets decreased from £44,257 to £29,686, which may reflect asset disposals or depreciation, but total assets less current liabilities improved from £19,347 to £23,407.
• Long-term liabilities decreased from £9,042 to £5,538, reducing financial gearing.
• The company remains small scale with total assets under £60k and shareholders’ funds of £15k, consistent with a micro entity classification.

3. Cash Flow Assessment:

• Current liabilities exceed current assets by £6,279 (2025), an improvement from a negative working capital of £24,910 the previous year, but still a concern for short-term liquidity.
• The presence of prepayments and accrued income (£2,809) supports some cash flow smoothing.
• Average employee number reduced slightly, indicating possible cost control.
• Without cash flow statements, it is difficult to assess operating cash generation, but the negative net current assets suggest reliance on external financing or owner funding to meet short-term obligations.

4. Monitoring Points:

• Track quarterly updates on cash flow and working capital to ensure liquidity improves or remains manageable.
• Monitor any changes in current liabilities, especially overdue creditors or short-term borrowings.
• Watch for further increases in net assets and reduction in long-term debt to strengthen solvency.
• Review directors’ ongoing financial management and any changes in ownership or control that might affect credit risk.
• Keep an eye on industry conditions in electrical installation that may impact revenue or payment patterns.