Company Number: 13588738

Analysis Date: 2025-07-29 20:23 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   DM Pharma Consultancy Ltd demonstrates sufficient liquidity and positive net assets, indicating an ability to meet short-term obligations. However, the company is relatively young (incorporated in 2021), with a small operating scale (2 employees), and declining net assets and net current assets over recent years. The modest fixed asset base and limited turnover data (not provided) warrant caution. Approval is recommended with conditions including ongoing monitoring of cash flow and profitability to ensure sustained debt servicing capability.

2. Financial Strength
   The balance sheet shows net assets of £83,287 as of 31 August 2024, down from £97,327 in the prior year, reflecting a decrease in retained earnings. Current assets, mainly cash (£98,868), comfortably exceed current liabilities (£27,384), resulting in a strong net current asset position (£71,484). Fixed assets are modest (£11,803), comprised of motor vehicles, with depreciation reducing their book value. The company maintains a positive equity base but has experienced a slight decline, indicating some erosion of financial strength.

3. Cash Flow Assessment
   The company holds a healthy cash balance relative to current liabilities, supporting good short-term liquidity and working capital management. The absence of trade debtors at the latest year-end suggests limited credit risk from customers but may also indicate limited sales on credit terms. No audit or profit and loss data were provided, but the cash position and net current assets suggest the company can meet near-term obligations without refinancing risk. Continued monitoring of cash generation is advised.

4. Monitoring Points

• Profitability and retained earnings trends, to assess sustainability of equity and capital build-up.
• Cash flow from operations, to confirm ongoing liquidity and ability to service debts.
• Level of current liabilities relative to cash and other liquid assets, especially if the company plans growth or takes on new debt.
• Any future changes in fixed assets or capital expenditure that may impact liquidity.
• Director stability and governance, noting only one current director since 2022 with no adverse records.