Company Number: 13889944

Analysis Date: 2025-07-20 18:46 UTC

1. Credit Opinion: DECLINE
   Foot Medic Group Ltd exhibits a weak financial position with persistent net liabilities and negative working capital. The company has failed to generate positive net assets since incorporation, indicating losses or accumulated deficits. The negative net current assets position worsened from -£8,122 in 2023 to -£23,221 in 2024, implying increased short-term liquidity risk. Given the micro-entity size and limited asset base, the company’s ability to service debt or meet short-term obligations without external support appears constrained. Without evidence of profitability or positive cash flows, extending credit would pose a high risk.

2. Financial Strength:
   The balance sheet shows minimal fixed assets (£3,948) and a growing gap between current liabilities (£150,747) and current assets (£127,526), resulting in a net current liability position of -£23,221 as of February 2024. The company’s net liabilities stand at -£23,488, worsening from -£5,524 in the prior year, reflecting accumulated losses or capital erosion. Shareholders’ funds are negative, evidencing that the company’s liabilities exceed its assets. The capital structure is weak, and the company relies heavily on creditor funding or possibly director loans, which creates vulnerability.

3. Cash Flow Assessment:
   While cash specifics are not disclosed, the negative net current assets indicate working capital deficiencies, suggesting potential cash flow challenges in meeting short-term obligations. The company employs only 2 staff, which limits overheads but also indicates a small operational scale. Without positive net assets or a strong cash reserve, liquidity risk remains high. The absence of audit and limited disclosures restrict insight into operational cash flows, but the financial trends suggest ongoing cash strain.

4. Monitoring Points:

• Improvement in net current assets and reversal of net liabilities to positive equity
• Profitability indicators in future accounts to assess operational sustainability
• Cash flow statements when available to understand liquidity trends
• Any changes in director funding or external financing arrangements
• Timely filing of accounts and confirmation statements to maintain compliance and transparency