S M MEDICS LTD

Executive Summary

S M Medics Ltd shows a stable financial position with strong liquidity and compliance, supporting a low risk rating overall. However, a modest decline in net assets and outstanding directors’ advances warrant further review to confirm ongoing operational and financial stability. The company’s small scale suggests sensitivity to business disruptions, making detailed due diligence advisable.

S M MEDICS LTD - Analysis Report

Company Number: 13631582

Analysis Date: 2025-07-29 13:06 UTC

1. Risk Rating: LOW
   The company demonstrates a solid net asset position with net current assets consistently positive and cash holdings sufficient to cover current liabilities. No overdue filings or liquidation status are noted, supporting a low risk rating.

2. Key Concerns:

• Declining Net Assets: Net assets have decreased from £55,214 (2023) to £50,842 (2024), indicating a modest erosion of equity over the last year which merits monitoring.
• Directors’ Advances: Both directors have outstanding balances of £825 each, increasing since last year. While not necessarily negative, the nature and terms of these advances should be reviewed for potential financial risk or conflicts.
• Limited Operational Scale: The company employs only one person and reports relatively modest total assets and turnover (inferred by account category). This small scale could present operational risks if revenue streams are disrupted.

3. Positive Indicators:

• Strong Liquidity: Cash balances of approximately £60,000 comfortably exceed current liabilities of £11,189, indicating good short-term liquidity and ability to meet obligations.
• Compliance: No overdue accounts or confirmation statements; filings are up to date, indicating good regulatory compliance.
• Stable Ownership and Management: Directors and PSCs remain consistent since incorporation with no disqualifications or governance concerns reported.

4. Due Diligence Notes:

• Investigate the reason for the decline in net assets and whether this trend is expected to continue.
• Clarify the nature and terms of directors’ advances to assess any potential financial or governance risks.
• Review turnover and profitability details, if accessible, since the Statement of Income was not filed, to better understand operational sustainability.
• Confirm the company's business activities related to both medical practice and real estate to assess diversification and risk exposure.