Company Number: 15076285

Analysis Date: 2025-07-20 13:51 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   LP SD Eighty Five Limited is a recently incorporated private limited company (established August 2023), operating in the dispensing chemist sector. Its financial data covers a short period, showing modest net assets of £20,749 and positive net current assets of £16,194. The company is currently active with no overdue statutory filings, which is positive. However, due to its short trading history and limited scale, credit exposure should be cautiously managed. Approval is recommended with conditions, such as monitoring cash flow closely and requiring personal guarantees or security if credit limits are extended.

2. Financial Strength
   The company’s balance sheet shows a small but positive net asset base (£20,749), supported by tangible fixed assets (£6,073) and working capital (£16,194). Current liabilities (£167,022) are largely covered by current assets (£183,216), indicating manageable short-term obligations. Shareholders’ funds correspond to net assets, with retained earnings reflecting initial profits or capital injections. The company’s size and capitalization are limited, and it depends significantly on its parent SM Pharmco Limited, which holds a controlling interest (75-100%). This affiliation may provide additional support if required.

3. Cash Flow Assessment
   Cash at bank stands at £56,959, which provides reasonable liquidity given the scale of operations and current liabilities. Debtors (£96,257) form the largest portion of current assets, suggesting some reliance on prompt debtor collections for liquidity. Stock levels at £30,000 appear appropriate for the dispensing chemist trade. Net current assets of £16,194 indicate positive working capital, but the company should maintain disciplined debtor and creditor management to avoid cash flow stress.

4. Monitoring Points

• Debtor ageing and collection efficiency to ensure cash flow sufficiency.
• Changes in current liabilities, particularly trade creditors and amounts owed to group undertakings.
• Profitability trends once profit and loss accounts are filed in the future.
• Any increase in credit exposure or borrowing requirements.
• Continued compliance with filing deadlines and governance standards.
• The financial health and support capability of the ultimate controlling party, SM Pharmco Limited.