SKS MEDICS LTD

Executive Summary

SKS MEDICS LTD is a small, early-stage healthcare company with a positive but declining net asset base and limited operating history. While the company is currently liquid and solvent, the reduction in equity and net current assets suggests cautious credit approval with ongoing monitoring is prudent. Maintaining tight control on cash flow, liabilities, and profitability will be critical to support future credit facilities.

SKS MEDICS LTD - Analysis Report

Company Number: 13828512

Analysis Date: 2025-07-29 13:43 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   SKS MEDICS LTD is a recently incorporated private limited company operating in the healthcare sector. The company shows a modest but positive net current asset position and shareholders’ funds, indicating some financial stability. However, the company is small, with limited operating history and minimal fixed assets. The decline in net current assets and shareholders’ funds from £10,445 in 2023 to £7,183 in 2024 suggests some erosion of capital or profitability. Given the early stage of the business and modest liquidity, credit facilities can be approved conditionally, subject to monitoring of cash flow and trading performance.

2. Financial Strength:
   The balance sheet reflects a very small business with current assets mainly held in cash (£20,137) and no recorded debtors in the latest year, whereas the previous year showed some debtors. Current liabilities increased slightly to £12,954. The net current assets of £7,183 and positive shareholders’ funds demonstrate a basic but positive equity position. There are no long-term liabilities or fixed assets reported, consistent with a start-up service business model. The decline in retained earnings and net assets compared to prior years calls for attention to profitability and capital preservation.

3. Cash Flow Assessment:
   Cash on hand remains the primary current asset, indicating liquidity is concentrated in cash rather than receivables or inventory. The absence of debtors in the latest accounts may reflect tighter credit control or slower sales. Current liabilities are mainly taxation and social security amounts (£11,623), which should be carefully managed to avoid cash flow strain. Net working capital remains positive but has decreased, so the company should maintain close control on operating cash flows and creditor payments to ensure ongoing liquidity.

4. Monitoring Points:

• Quarterly cash flow statements to track liquidity trends and ensure sufficient cash to meet liabilities.
• Profitability and retained earnings trends in future accounts filings to assess capital erosion risks.
• Debtor days and credit control effectiveness to avoid sudden liquidity shortages.
• Tax and social security liabilities levels and payment timeliness to prevent penalties or enforcement action.
• Any changes in directors or significant control that may affect governance and risk profile.