SALFORD STOCKPORT AND TRAFFORD LOCAL MEDICAL COMMITTEE LIMITED

Executive Summary

Salford Stockport and Trafford Local Medical Committee Limited exhibits a solid liquidity position and positive net asset growth, supported by recent organizational consolidations. While current liabilities have increased primarily due to deferred grants, the company maintains strong cash reserves and compliance with filing obligations. Investors should focus due diligence on the sustainability of funding sources and management of deferred income commitments to ensure ongoing operational stability.

SALFORD STOCKPORT AND TRAFFORD LOCAL MEDICAL COMMITTEE LIMITED - Analysis Report

Company Number: 13832318

Analysis Date: 2025-07-20 17:25 UTC

1. Risk Rating: LOW
   The company demonstrates a strong net asset position, substantial cash holdings relative to liabilities, and no overdue filings, indicating low solvency and liquidity risk at this stage.

2. Key Concerns:

• Significant increase in current liabilities in 2024 (£137,662 from £29,929 in 2023), driven largely by deferred grant income, which may require monitoring to ensure appropriate expenditure and cash flow management.
• Concentration risk from dependency on grants and transfers from other Local Medical Committees (LMCs) as indicated by transfer income, which could impact sustainability if funding sources change or reduce.
• Limited operational scale with only 3-4 employees and modest tangible fixed assets, suggesting potential vulnerability to operational disruptions or capacity constraints.

3. Positive Indicators:

• Strong liquidity with cash balances (£417,961) significantly exceeding current liabilities (£137,662) as of 31 March 2024, providing a comfortable buffer for short-term obligations.
• Growing net assets and reserves from £182,370 in 2023 to £290,127 in 2024, reflecting positive retained income and inflows from organizational consolidations.
• Up-to-date statutory compliance with no overdue accounts or confirmation statements, reflecting good governance and regulatory adherence.

4. Due Diligence Notes:

• Verify the nature and conditions attached to the deferred grant income (£102,521) included in other creditors to assess timing and certainty of associated expenditures.
• Assess the sustainability and terms of funding arrangements from LMC transfers, especially following the 2024 acquisition of Stockport LMC activities, to evaluate ongoing revenue stability.
• Review operational capacity and key personnel continuity given the small staff size and recent director resignation to understand risks to service delivery.