Company Number: 12447443

Analysis Date: 2025-07-19 12:06 UTC

1. Risk Rating: LOW
   PHARMMA LTD exhibits a solid financial position relative to its size, with positive net current assets and net assets that have increased year-on-year. The company is current with all statutory filings and shows no signs of financial distress or regulatory non-compliance.

2. Key Concerns:

• Director Loan Dependency: The company’s current liabilities include a significant director loan (£4,878 in 2024, down from £30,608 in 2023). While reduced, reliance on director loans for short-term financing could indicate limited external funding options.
• Limited Employee Base: With only one employee on average, operational capacity is minimal, which could constrain growth or business continuity in the director’s absence.
• Modest Asset Base: Tangible fixed assets are minimal (£2,083), implying limited physical resources, which may affect scalability or operational resilience.

3. Positive Indicators:

• Strong Liquidity Position: Cash balances of £44,704 exceed current liabilities of £10,626, providing comfortable liquidity.
• Growing Equity Base: Shareholders’ funds increased from £27,702 in 2023 to £36,161 in 2024, reflecting retained profits and financial strengthening.
• Compliant and Up to Date: No overdue filings, full exemption from audit consistent with company size, and accounts prepared in accordance with applicable standards indicate sound governance and compliance.

4. Due Diligence Notes:

• Investigate the nature and terms of the director loan, including repayment plans and potential impact on cash flow.
• Review the company’s business model given its SIC code (74909) to understand revenue streams and sustainability with a single employee.
• Confirm whether the company’s reliance on the director is a risk factor, including any succession planning or contingency measures.
• Examine profit and loss account details (not publicly filed) to assess profitability trends and operational cash flow quality.