SAMPHIRE NEUROSCIENCE LTD

Executive Summary

Samphire Neuroscience Ltd exhibits strong liquidity and growing net assets, reflecting good financial health despite accumulated losses typical of an early-stage company. The company’s healthy cash reserves and working capital provide a sound foundation for continued growth, though focus on improving profitability is essential. Maintaining strong cash flow management and careful inventory control will support a positive financial trajectory going forward.

SAMPHIRE NEUROSCIENCE LTD - Analysis Report

Company Number: 13600022

Analysis Date: 2025-07-29 18:27 UTC

Financial Health Assessment of Samphire Neuroscience Ltd (As of 30 September 2024)

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1. Financial Health Score: B

Explanation:
Samphire Neuroscience Ltd demonstrates strong financial stability with robust liquidity and solid net asset growth over recent years. The company maintains a healthy cash position and positive working capital, which are vital signs of good operational health. However, some caution is warranted due to the negative retained earnings (accumulated losses), which indicate ongoing investment or early-stage losses typical in a growth or R&D intensive business. Overall, the company is financially sound but should monitor profitability trends closely.

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2. Key Vital Signs

Metric	2024 Value	Interpretation
Share Capital	£154	Minimal share capital, typical for a private limited company, indicates modest initial equity.
Fixed Assets	£20,307	Moderate investment in tangible and intangible assets, increasing from prior year, indicating growth.
Current Assets	£650,144	Strong current assets, largely driven by cash (£551,454), signaling excellent liquidity.
Current Liabilities	£67,224	Low short-term liabilities relative to assets, implying strong ability to meet short-term obligations.
Net Current Assets (Working Capital)	£582,920	Very healthy working capital, a key indicator of operational liquidity and financial flexibility.
Net Assets / Shareholders' Funds	£603,227	Positive net assets, increased significantly from £389,514 in 2023, reflecting improved financial strength.
Profit & Loss Reserve	-£1,058,008	Negative retained earnings indicate accumulated losses, common in R&D/startup phases but a symptom to watch.
Cash Position	£551,454	Very healthy cash reserve, a vital sign of good cash flow management and runway for operations.
Debtors	£11,385	Low debtor balance relative to cash, indicating efficient collection or limited credit risk.
Stock	£87,305	Introduction of inventory this year, possibly indicating expansion or increased production activity.

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3. Diagnosis: Financial Condition Overview

• Healthy Cash Flow & Liquidity: The company shows a "healthy pulse" in cash flow terms, with over half a million pounds in cash and net current assets well exceeding current liabilities. This robust liquidity cushions the company against short-term financial stress.
• Growth Phase Indicators: The increase in fixed assets and stock suggest active investment in infrastructure and inventory, consistent with expansion or increased business activity.
• Accumulated Losses ("Symptoms of Early Stage Strain"): The substantial negative retained earnings reflect cumulative losses since incorporation, which is typical in early-stage or R&D-heavy businesses. While not immediately alarming, it signals the need for careful monitoring of profitability and cost control.
• Equity Funding and Capital Structure: Shareholders’ funds have increased significantly, likely due to share premium injections or capital raising, providing a solid financial base and "immune boost" against operational headwinds.
• No Audit Requirement: The unaudited abridged accounts indicate a small company status, suggesting simpler financial reporting and possibly lower operational complexity.

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4. Recommendations: Prescriptions for Financial Wellness

• Focus on Profitability: Transition from a loss-making phase by improving operational efficiencies and increasing revenue streams to reduce accumulated losses. Consider detailed cost control and scaling profitable product lines.
• Maintain Strong Liquidity: Continue prudent cash management practices to sustain the strong cash reserves, ensuring flexibility for investments or unforeseen expenses.
• Inventory Management: Monitor inventory levels closely to avoid overstocking or obsolescence, which can tie up cash and create financial strain.
• Prepare for Scaling: As the company grows, consider preparing for audited financial statements to enhance credibility with investors and creditors.
• Strategic Funding Planning: Ensure that future capital raises or funding rounds are aligned with growth plans and profitability targets to avoid dilution and maintain shareholder value.

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