Company Number: 12994679

Analysis Date: 2025-07-20 14:47 UTC

1. Credit Opinion: DECLINE
   Pharmacia Developments Limited exhibits significant financial distress with net liabilities of £76,791 as at 30 November 2023, worsening from a near break-even position the year before. The company’s current liabilities exceed current assets, and it holds substantial long-term creditors, including bank loans and other creditors totaling £140,000 due after one year. The absence of employees and the declining debtor balances suggest limited operational activity and cash inflow. Furthermore, the company’s inability to generate positive equity and its consistent losses raise concerns about its capacity to service debt or sustain commercial commitments. Without evidence of profitable trading or committed financial support, extending credit carries heightened risk.

2. Financial Strength:
   The balance sheet shows negative shareholders’ funds (£-76,791) reflecting accumulated losses. Current assets reduced sharply from £1.78M to £57,870, mainly due to a drop in debtors and elimination of inventories. Current liabilities are at £5,339, down from £32,610, but the key issue is the long-term creditors of £140,000 still outstanding, indicating leverage and potential solvency issues. The company holds no fixed assets and no employees, which limits its capacity to generate revenue or restructure operations. The financial trajectory points to declining asset base and worsening net position, indicating weak financial resilience.

3. Cash Flow Assessment:
   The company’s working capital position is technically positive at £63,209, but this includes debtors of £57,870 which may not be readily collectible. The absence of inventories and a minimal current liabilities figure suggest limited ongoing trading activity. No cash or bank balances are explicitly reported, and outstanding bank loans from prior periods have been reduced but not eliminated. The lack of employees and continuing losses imply limited operational cash generation. The company’s liquidity appears fragile, with potential cash flow constraints to meet creditor demands or fund growth.

4. Monitoring Points:

• Monitor changes in net liabilities and shareholders’ funds for improvement or further deterioration.
• Track debtor ageing and collection effectiveness to assess realisable cash.
• Review creditor arrangements, especially the status of long-term loans and repayment terms.
• Watch for any new capital injections or operational developments that could improve earnings and liquidity.
• Assess director and management changes for indications of strategic repositioning or turnaround plans.