Company Number: 14499360

Analysis Date: 2025-07-20 16:58 UTC

1. Credit Opinion: CONDITIONAL APPROVAL

RMGS PHARMA & AUDITING SERVICES LTD is a recently incorporated small private limited company showing modest net assets and working capital. The company demonstrates positive net current assets but with very tight liquidity. The increase in cash from £885 to £26,097 over the last year is a positive sign, but the absence of trade debtors in 2024 (compared to £13,500 in 2023) may indicate changes in revenue recognition or cash collection patterns. Given the early stage of the company and low equity base (£635), credit facilities could be extended with conditions requiring ongoing monitoring of cash flow, debtor management, and timely submissions of accounts. The directors appear stable and have no adverse records.

2. Financial Strength:

The balance sheet strength is minimal with net assets of £635 as of 31 October 2024. The company is classified as a small entity with total current assets of £26,097 mainly held as cash, against current liabilities of £25,462. The increase in current liabilities, particularly taxation and social security costs (£24,334), suggests increasing operational scale but also potential cash flow pressures. The share capital remains nominal at £100, with accumulated profits totaling £535, indicating limited retained earnings. The company is solvent but vulnerable to unexpected cash demands.

3. Cash Flow Assessment:

Cash position improved substantially from £885 to £26,097 year-on-year, indicating better liquidity management or recent capital injections/fund inflows. However, current liabilities are almost equal to current assets, resulting in very thin net working capital (£635). The lack of reported trade debtors in 2024 could imply faster cash conversion or a reduction in credit sales. The company employs two staff on average, suggesting a lean cost base. The tight liquidity position necessitates close monitoring of cash flows to avoid short-term funding difficulties.

4. Monitoring Points:

• Cash flow trends and working capital adequacy, especially given the tight net current assets.
• Credit terms and debtor balances to ensure sustainable revenue recognition and cash inflow.
• Taxation and social security liabilities as they form a significant portion of current liabilities.
• Directors’ adherence to filing deadlines and financial reporting transparency.
• Impact of any business growth or changes in contract terms affecting liquidity and profitability.