Company Number: 12951574

Analysis Date: 2025-07-29 14:15 UTC

Financial Health Assessment of ANSON PHARMA LTD

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1. Financial Health Score: B-

Explanation:
ANSON PHARMA LTD shows signs of stable financial footing for a micro-entity, with positive net current assets and shareholders’ funds over the last few years. However, the minimal asset base, small equity capital (£1), and a slight decline in net assets in the most recent year indicate some vulnerability. The company maintains a healthy liquidity buffer but has limited fixed assets and very modest capitalisation. Overall, the financial health is sound but should be monitored closely.

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2. Key Vital Signs

Metric	2023 Value	Interpretation
Fixed Assets	£499	Very low fixed assets, typical of a micro business with limited investment in physical assets.
Current Assets	£8,784	Adequate short-term assets, mainly cash or receivables, showing liquidity.
Current Liabilities	£7,930	Short-term liabilities are close to current assets, indicating tight working capital management.
Net Current Assets (Working Capital)	£854	Positive but modest working capital, indicating the company can meet short-term obligations but with limited cushion.
Total Assets Less Current Liabilities	£1,353	Reflects net asset value, showing a small but positive buffer after liabilities.
Shareholders’ Funds	£1,353	Equity capital is minimal but positive and stable, showing no insolvency signs.
Share Capital	£1	Nominal share capital, suggests limited initial investment by owners.
Employees	1	Very small workforce, typical for micro entities, indicates limited operational scale.

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3. Diagnosis: What the Financial Data Reveals

• Liquidity Status (“Healthy Cash Flow”): The company maintains a positive net current asset position with current assets exceeding current liabilities by £854. This is a positive sign that the company can cover short-term debts and operational expenses, though the margin is narrow, which may pose risks under stress.

• Capital Structure (“Limited Vitality”): The very low share capital (£1) and minimal fixed assets indicate the company operates with a lean capital base and relies primarily on current assets and liabilities. This is typical for a start-up or micro-entity but leaves little buffer for unexpected expenses or investment.

• Profit Retention & Growth (“Symptoms of Stagnation”): Shareholders’ funds have decreased from £1,828 in 2022 to £1,353 in 2023, suggesting either small losses or distributions. This slight shrinkage in net assets could indicate early challenges in scaling or profitability, although the amounts are small.

• Operational Scale (“Minimal Footprint”): With only one employee and limited assets, the company appears to be in an early or specialized stage, possibly providing consultancy or other non-capital-intensive services aligned with its SIC codes (human health activities, business support).

• Compliance & Reporting: The company is current on filings and not overdue on accounts or confirmation statements, indicating good governance and regulatory compliance.

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4. Recommendations: Actions to Improve Financial Wellness

• Strengthen Capital Base: Consider increasing share capital or retaining more earnings to build equity. A stronger capital buffer enhances resilience against shocks and supports growth initiatives.

• Improve Working Capital Cushion: Aim to increase net current assets by managing receivables and payables more efficiently or building cash reserves to reduce liquidity risks.

• Monitor Profitability: Review operational costs and revenue streams closely to address the slight decline in net assets. Implement cost controls or explore new revenue channels to boost retained earnings.

• Asset Investment Strategy: Evaluate if investing in fixed assets or technology could improve operational efficiency or market position, balanced against the financial capacity.

• Maintain Regulatory Compliance: Continue timely filings and consider periodic financial reviews to detect early signs of distress or opportunity.

• Plan for Growth: Given the micro size and limited scale, develop a strategic plan for sustainable growth, potentially including hiring, marketing, or partnerships.

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Medical Analogy Summary:

ANSON PHARMA LTD shows the “vital signs” of a micro-entity with a “healthy cash flow” enabling it to meet short-term obligations. However, the “symptoms of distress” such as declining net assets and minimal capitalisation suggest it is in a fragile condition that requires attention to “strengthen the immune system” (capital and liquidity) and “improve metabolic efficiency” (profitability and asset investment) to ensure robust future health.

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