Company Number: 14499040

Analysis Date: 2025-07-20 17:00 UTC

Financial Health Assessment for Pharmasupply Advisory Ltd

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1. Financial Health Score: C

Explanation:
Pharmasupply Advisory Ltd shows early-stage financials typical of a newly incorporated micro-entity. The company maintains positive net current assets and net assets, which are signs of initial financial stability. However, the extremely low net asset value (£405) and very slim working capital (£1,200) indicate a fragile financial condition with limited buffer to absorb shocks. This results in a moderate "C" grade—stable but vulnerable, requiring careful management to strengthen financial resilience.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	33,485	Adequate cash/receivables for short-term needs.
Current Liabilities	32,285	High relative to assets; tight liquidity.
Net Current Assets	1,200	Positive but minimal working capital ("healthy pulse" but weak).
Accruals & Deferred Income	795	Liabilities not yet due, adding to short-term pressure.
Net Assets (Shareholders’ Funds)	405	Very low equity cushion; "thin bloodstream" of capital.
Employees	0	No staff expenses yet; minimal operational complexity.

Additional Context:

• The company is classified as a micro entity under UK law, with simplified filing and accounting requirements.
• Incorporated in November 2022, it is still in the infancy stage of its business lifecycle.
• No audit required under micro-entity rules, which is typical but limits external financial scrutiny.

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3. Diagnosis

Pharmasupply Advisory Ltd’s financial "vital signs" reveal a business in its nascent stage with very limited net worth and working capital. The positive net current assets indicate a "heartbeat" of liquidity, but the margin is slender, bordering on a symptom of financial vulnerability. The minimal equity base (£405) suggests the company is highly reliant on the director's capital injection or short-term creditor financing.

The absence of employees aligns with an advisory or consultancy model, which typically has lower fixed costs but also potentially irregular revenues. The company's SIC code (70229) confirms its focus on management consultancy excluding financial management, a sector with variable cash flow patterns depending on client acquisition.

There are no alarming symptoms such as accumulated losses or overdue accounts filings, which suggests disciplined compliance and absence of immediate distress signals. However, the low net assets and tight working capital mean the company has little "physiological reserve" to handle unexpected costs or downturns.

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4. Recommendations

To improve the financial wellness and build a more robust financial condition, the following actions are advised:

• Strengthen Capital Base: Consider additional capital injections or retained earnings accumulation to build equity. This will provide a stronger buffer against financial stress and support future growth.

• Improve Working Capital Management: Maintain or increase cash reserves relative to liabilities. Focus on accelerating receivables collection and negotiating better payment terms with creditors.

• Develop Revenue Streams: As a consultancy, securing stable contracts and recurring clients will help create a reliable "blood flow" of income, reducing liquidity risk.

• Cost Control: Keep operating costs low, especially while the business scales, to preserve the fragile net asset position.

• Regular Financial Monitoring: Implement monthly cash flow forecasting and financial reviews to detect early signs of distress and adjust operations accordingly.

• Prepare for Growth: Plan for hiring or investment only once a healthy financial cushion is established to avoid overextension.

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