Company Number: 14357080

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: APPROVE with conditions.
   KA1 PHARMA LIMITED is a micro-entity operating in the human health activities sector since September 2022. The company shows improving financial metrics with net assets increasing from £1,263 in 2023 to £3,146 in 2024. The positive net current assets of £1,789 in 2024 indicate sufficient short-term liquidity to cover liabilities. However, the company is very small, with only one employee and minimal fixed assets, so capacity to absorb shocks may be limited. Approval is recommended but with monitoring of cash flow and growth trajectory.

2. Financial Strength:
   The balance sheet shows modest but improving financial health. Fixed assets decreased slightly from £1,695 in 2023 to £1,356 in 2024, which is negligible at this scale. Current assets have grown substantially from £848 to £6,316, significantly enhancing liquidity. Current liabilities increased to £4,527 but remain covered by current assets, yielding a positive net working capital position of £1,789. Shareholders’ funds have grown to £3,146, representing retained earnings or equity injections. Overall, the balance sheet is stable but limited in scale.

3. Cash Flow Assessment:
   The significant increase in current assets suggests better cash or receivables management, improving the company’s ability to meet short-term obligations. The positive net current assets position indicates adequate working capital. With only one employee and low fixed asset base, the company likely has low operating overheads, which supports liquidity. There is no direct cash flow statement data, but the balance sheet trends indicate improving operational cash flow capacity.

4. Monitoring Points:

• Continue monitoring net current assets and liquidity ratios to ensure ongoing ability to meet short-term liabilities.
• Watch for revenue growth and profitability indicators as the company expands beyond micro-entity scale.
• Review director’s financial stewardship and any changes in ownership or control that may affect credit risk.
• Monitor timely submission of accounts and returns to avoid compliance risks.