MDPHARMA LTD

Executive Summary

MDPHARMA LTD is a micro-sized, newly formed medical practice company with a small but positive net asset position and adequate liquidity at present. Although the company’s financials are very modest, compliance is good and no red flags exist. Credit approval is suitable at limited exposure with close monitoring of cash flow and business development as it builds operational history.

MDPHARMA LTD - Analysis Report

Company Number: 14679887

Analysis Date: 2025-07-29 12:32 UTC

1. Credit Opinion:
   APPROVE with caution. MDPHARMA LTD is a newly incorporated company (Feb 2023) operating in general medical practice activities. The company has submitted its first full set of accounts without any overdue filings, which indicates compliance and good governance. The small positive net assets and working capital suggest a low-risk level on the balance sheet, but the scale of operations is very limited, with no employees and minimal capital. Given the size and early stage, credit limits should be modest and potentially secured or guaranteed until financial track record improves.

2. Financial Strength:
   Balance sheet strength is minimal but positive. The company holds £21,062 in cash against current liabilities of £18,857, resulting in net current assets of £2,205 and net assets/shareholders’ funds of £2,205. Equity consists mainly of retained earnings accumulated from initial operations. The absence of fixed assets and employees points to a service model with low capital intensity. The company’s modest equity base and liabilities are consistent with a micro-entity profile, implying limited financial cushion against unexpected shocks.

3. Cash Flow Assessment:
   Liquidity position is adequate for current scale, with cash exceeding current liabilities by about £2,200. However, the absolute cash balance is small, and there is no evidence yet of positive operating cash flow or receivables turnover given the early stage of trading. The working capital is positive but tightly matched to liabilities. Monitoring cash flow inflows from client payments and managing payables will be critical to avoid liquidity stress.

4. Monitoring Points:

• Revenue growth and profit generation in forthcoming periods to build reserves.
• Cash flow trends and working capital management as business scales.
• Any changes in current liabilities or introduction of longer-term debt.
• Director’s ongoing involvement and any changes in control or ownership.
• Filing of next accounts and confirmation statement on time to maintain compliance.