Company Number: 14007688

Analysis Date: 2025-07-29 18:39 UTC

1. Risk Rating: MEDIUM
   NH Pharmaceutical Engineering Limited shows a modest net asset base and positive working capital but demonstrates a significant decline in current assets and net assets year-over-year. The presence of director loans and limited operational scale suggest some risks in liquidity and operational stability, though no overdue filings or regulatory issues are evident.

2. Key Concerns:

• Declining Net Assets: Net assets decreased from £7,075 in 2023 to £2,388 in 2024, indicating potential erosion of financial stability.
• Reduced Current Assets and Cash Position: Current assets dropped sharply from £24,958 to £4,159, which may signal liquidity constraints or reduced cash reserves.
• Director Loans: An outstanding unsecured, interest-free director loan of £1,771 remains on the balance sheet, which may impact cash flow if not repaid promptly and reflects reliance on internal financing.

3. Positive Indicators:

• Positive Net Current Assets: Despite the drop, net current assets remain positive at £2,205, suggesting the company can currently cover short-term liabilities.
• No Overdue Filings or Regulatory Issues: The company is current on all statutory filings and has no indications of compliance or governance breaches.
• Stable Ownership and Management: A single director and 75-100% shareholder, Mr. Neal Hanks, provides clear control and accountability.

4. Due Diligence Notes:

• Investigate reasons for the sharp reduction in current assets and net assets between 2023 and 2024, including cash flow patterns and client receivables.
• Review the nature and terms of director loans, including repayment plans and potential impact on liquidity.
• Confirm ongoing operational activity and revenue streams given the micro-entity status and limited employee count.
• Assess whether the company’s business model in engineering consulting is generating sustainable earnings or is reliant on director funding.