TRUST MEDICAL GROUP LTD

Executive Summary

TRUST MEDICAL GROUP LTD shows a robust financial condition characterized by strong liquidity and substantial growth in net assets, typical of a well-managed micro-entity. While the company maintains excellent short-term financial health, its small operational scale presents some vulnerability. Strategic growth and prudent financial management are recommended to sustain and build upon this healthy foundation.

TRUST MEDICAL GROUP LTD - Analysis Report

Company Number: 13845388

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment of TRUST MEDICAL GROUP LTD

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1. Financial Health Score: B

Explanation:
The company demonstrates solid financial stability with strong improvements in net assets and working capital over the last two years. The balance sheet shows healthy liquidity and growing equity, indicating good financial management. However, as a micro-entity with only one employee and limited operational scale, the scope for rapid growth and risk diversification is constrained, which tempers the score from an A.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	30,788	Stable investment in long-term assets, indicating some capital expenditure but no major asset growth or impairment.
Current Assets	137,220	Significant increase from prior year, showing strong cash and receivables position — a sign of healthy liquidity.
Current Liabilities	28,926	Decreased compared to prior year, indicating better short-term debt management.
Net Current Assets	108,294	Very healthy working capital (current assets minus current liabilities), a key marker of short-term financial wellness.
Net Assets / Shareholder Funds	137,919	Increased nearly threefold year-over-year, reflecting retained earnings or capital injections, and a strong equity base.
Director Advances	£24,364 owed from Director to Company	Indicates internal financing arrangements, with funds owed back to the company from the director, which can be a positive internal liquidity source.
Average Employees	1	Micro-entity status with minimal staff, which limits operational scale but also controls fixed costs.

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3. Diagnosis

"Healthy Cash Flow and Strong Equity Growth"
The company exhibits the vital signs of a financially healthy micro business. The substantial increase in current assets and net assets shows that the company is accumulating resources and improving its capital base. The positive working capital suggests it can comfortably cover short-term obligations, reducing liquidity risks.

The stability in fixed assets points to controlled capital expenditure without overextension. The internal director loan position, where the director owes money to the company, is a sign of good internal fund management and potential capital buffer.

However, the company’s small size and limited employees mean it is vulnerable to market shifts and operational risks. The absence of an audit and reliance on micro-entity accounting provisions means less detailed external scrutiny, which is typical but worth noting for transparency and risk awareness.

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4. Recommendations

• Maintain Strong Liquidity: Continue monitoring cash flow closely to preserve the healthy net current assets position, ensuring the company can meet all short-term liabilities without stress.

• Build Operational Capacity: Consider strategic hires or partnerships to reduce dependency on a single individual and to support growth, mitigating risks related to limited human resources.

• Enhance Financial Reporting: Although exemption from audit is permissible, voluntarily enhancing reporting standards can build stakeholder confidence and prepare the company for potential scaling.

• Plan for Growth and Diversification: Use the strong equity base to explore growth opportunities, possibly expanding services or investing in technology, while maintaining prudent financial controls.

• Monitor Director Loan Balances: Ensure clear documentation and repayment plans for director advances to avoid complications or perceptions of financial strain.

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