CK QUALITY PHARMA SOLUTIONS LTD

Executive Summary

CK Quality Pharma Solutions Ltd presents a low risk profile based on its positive working capital, timely filings, and stable equity position. The company’s micro size and concentrated ownership warrant monitoring, particularly the recent decline in net assets and the sustainability of operations. Further due diligence on cash flow and governance should confirm its financial and operational resilience.

CK QUALITY PHARMA SOLUTIONS LTD - Analysis Report

Company Number: 13952195

Analysis Date: 2025-07-20 15:10 UTC

1. Risk Rating: LOW
   The company demonstrates solid net current assets and positive net assets for a micro-entity with no overdue filings and a stable director structure. Though relatively new, financial indicators suggest it can meet short-term obligations.

2. Key Concerns:

• Declining net assets year-on-year: Net assets decreased from £133,404 (2024) to £107,443 (2025), suggesting some erosion of equity that merits monitoring.
• Small scale of operations: As a micro entity with only 2 employees, the company may face operational risks and limited diversification of revenue sources.
• Concentrated control: One individual holds 75-100% share and voting rights, which could pose governance risks if the sole controlling party’s circumstances change.

3. Positive Indicators:

• Positive net current assets in all years: £104,759 as of 31 March 2025 indicates liquidity adequacy to cover short-term liabilities.
• No overdue statutory filings: Both accounts and confirmation statement are filed timely, indicating good compliance culture.
• Increasing staffing: Average employees increased from 1 to 2, suggesting some operational growth or capacity increase.
• Consistent positive shareholder equity: Shareholders’ funds remain positive and substantial relative to company size.

4. Due Diligence Notes:

• Investigate causes for the reduction in fixed assets and net assets between 2024 and 2025 to understand if this is due to asset disposals, losses, or other factors.
• Review cash flow statements (not provided) to ensure that liquidity is supported by operating cash flows, not just asset liquidation or short-term financing.
• Confirm the business model sustainability given the small size, market niche (SIC 74909), and dependence on a single controlling shareholder.
• Assess director experience and background further to confirm governance robustness given concentrated shareholding.
• Verify any off-balance sheet liabilities or contingent risks not captured in micro-entity accounts.