SPEARMAN SURGICAL SERVICES LIMITED

Executive Summary

Spearman Surgical Services Ltd displays solid financial health with strong liquidity and positive equity, typical for a micro-entity medical practice. While the slight decrease in net assets warrants monitoring, the company currently shows no signs of financial distress. Maintaining cash flow discipline and carefully managing assets will support continued financial wellness.

SPEARMAN SURGICAL SERVICES LIMITED - Analysis Report

Company Number: 13248696

Analysis Date: 2025-07-20 18:23 UTC

Financial Health Assessment for SPEARMAN SURGICAL SERVICES LIMITED

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1. Financial Health Score: B

Explanation:
The company exhibits solid financial fundamentals typical of a micro-entity surgical specialist practice. It maintains positive net assets and healthy working capital, indicating overall stability. However, a slight reduction in total assets and net assets year-over-year suggests some caution. The absence of detailed profit and loss data limits deeper insight into profitability, so the score reflects a generally stable but cautiously monitored financial condition.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	1,109	Low fixed asset base, typical for a service-focused medical firm.
Current Assets	14,017	Sufficient short-term resources, mainly cash and receivables.
Current Liabilities	1,478	Manageable short-term debts; low relative to assets.
Net Current Assets (Working Capital)	12,539	Strong liquidity position; positive working capital supports operations.
Total Assets Less Current Liabilities	13,648	Indicates assets comfortably cover short-term liabilities.
Net Assets (Equity)	12,226	Positive equity base, showing retained value in the business.
Share Capital	200	Minimal share capital; company is likely owner-financed.
Number of Employees	2	Small team size consistent with micro-entity classification.

Additional Notes:

• The net current assets remain strong over several years, a sign of “healthy cash flow” or at least good short-term financial management.
• The decline in fixed assets and total assets from 2023 to 2024 may reflect asset disposals or depreciation exceeding reinvestment, which should be monitored.
• Accruals and deferred income are stable and low, indicating no unusual pending expenses or revenue deferrals.

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3. Diagnosis

The financial “symptoms” present a picture of a small but stable private medical practice with solid liquidity and a positive net asset position. The company is not over-leveraged—short-term liabilities are low relative to current assets, indicating a low risk of liquidity distress.

The slight decrease in net assets and total assets in the latest year could suggest either cautious asset management or a reduction in resources, possibly linked to operational scale or investment strategy. Since this is a micro-entity, limited disclosure means profitability trends are unclear; however, the stable net current assets and equity indicate no immediate “signs of financial distress” such as erosion of capital or working capital deficits.

The company’s ownership is concentrated fully with the director, Mr John Spearman, which can be positive for decision-making agility but may limit external capital inflows.

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4. Recommendations

• Monitor Asset Base: Investigate reasons behind the decline in fixed assets and total assets. Consider reinvestment if necessary to maintain operational capacity or growth potential.
• Cash Flow Management: Maintain or improve working capital levels to ensure continued “healthy cash flow,” especially important for a small medical practice with limited capital reserves.
• Profitability Transparency: Although exempt from audit and detailed P&L filing, consider preparing internal management accounts to track profitability trends, helping anticipate any early “symptoms” of financial strain.
• Diversify Funding: Explore options for expanding share capital or external funding if growth or equipment investment is planned to reduce reliance on owner financing.
• Compliance Vigilance: Continue timely filing of accounts and confirmation statements to avoid regulatory penalties that could stress financial resources.
• Succession and Governance: Given the small team and single major shareholder, consider formalizing governance and succession plans to safeguard business continuity.

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