PHELMA LTD

Executive Summary

Phelma Ltd exhibits a low risk profile based on its strong net asset position and improved liquidity in the latest financial year. The company is compliant with regulatory filings and maintains a lean operational structure. However, the sharp increase in current liabilities and sole director control warrant further investigation to ensure continued financial and operational stability.

PHELMA LTD - Analysis Report

Company Number: 13803296

Analysis Date: 2025-07-29 20:16 UTC

1. Risk Rating: LOW
   Phelma Ltd demonstrates strong financial stability for a micro-entity with a significant increase in net assets and net current assets in the latest financial year. The company is active, up to date with filings, and under private ownership with no signs of insolvency.

2. Key Concerns:

• Rapid increase in current liabilities from £23,066 (2022) to £212,520 (2023) could indicate a rising short-term financial obligation that should be monitored for sustainability.
• Reliance on a single director and shareholder with 100% control may pose governance risks and concentration of decision-making power.
• Limited operational data available due to micro-entity reporting exemptions restricts full transparency on profitability and cash flow trends.

3. Positive Indicators:

• Significant growth in current assets from £64,714 to £681,092 within one year, improving liquidity and working capital position.
• Positive net assets of £489,534 as of 31 December 2023, indicating solvency and a strong equity base relative to liabilities.
• No overdue statutory filings or compliance issues reported, reflecting good regulatory adherence.
• Stable fixed assets and low employee count suggest a lean operational model consistent with management consultancy activities.

4. Due Diligence Notes:

• Verify the nature and origin of the large increase in current liabilities and current assets to ensure no off-balance-sheet risks or unusual creditor terms.
• Assess the company’s revenue generation and profitability beyond balance sheet figures, which are limited by micro-entity reporting standards.
• Review director’s background and any potential conflicts of interest given sole control and ownership.
• Confirm ongoing operational contracts or client engagements supporting future revenue streams and sustainability.
• Investigate any related party transactions or loans that may impact financial stability.