SD BIOINFORMATICS LIMITED

Executive Summary

SD Bioinformatics Limited exhibits a significant deterioration in financial health with a sharp decline in net assets and liquidity in the latest year. Its small scale and rising long-term liabilities raise concerns about its ability to service debt and sustain operations. Credit extension is not advised without additional security or evidence of improved financial management.

SD BIOINFORMATICS LIMITED - Analysis Report

Company Number: 13555328

Analysis Date: 2025-07-29 18:58 UTC

1. Credit Opinion: DECLINE SD Bioinformatics Limited’s latest financials show a significant decline in net assets from £46,859 in 2023 to £9,779 in 2024, primarily due to increased long-term creditors (£7,091) not previously reported. This sudden rise in liabilities without corresponding asset growth poses concerns about the company’s ability to meet obligations. The sharp decrease in current assets from £53,770 to £11,860 also indicates deteriorating liquidity. With only one employee and limited fixed assets, operational scale is minimal, adding risk. The company’s payment capability is weak given the contraction of working capital and increased debt. Management quality cannot be fully assessed but the financial trajectory suggests challenges in sustaining growth or resilience during downturns. Given these factors, extending credit without strong mitigating controls or guarantees would be imprudent.

2. Financial Strength: The company is micro-sized with limited fixed assets (£4.4k) and a very small workforce (1 employee). Net current assets remain positive at £12,443, which is a buffer, but this is a marked decline from prior years (~£40k). The rise of creditors falling due after more than one year (£7,091) creates a material long-term liability that reduces net assets substantially. Shareholders’ funds have dropped from £46,859 to £9,779, indicating erosion of equity and potential financial stress. The balance sheet is weakening, reflecting reduced financial strength.

3. Cash Flow Assessment: Current assets have fallen sharply, and current liabilities have decreased too, but the net current assets have contracted significantly. The presence of long-term creditors may indicate loans or deferred payments, increasing future outflows. The company’s limited cash or liquid assets suggest constrained liquidity and working capital management challenges. No profit and loss data is available, but the net asset decline implies possible operating losses or cash burn. The company’s ability to generate positive cash flow and service debt is questionable.

4. Monitoring Points:

• Monitor changes in long-term liabilities and their terms to assess refinancing risk.
• Track quarterly cash flow statements if available to detect liquidity stress early.
• Observe any changes in shareholder funds or capital injections to support operations.
• Review director’s updates or strategic plans for improving financial stability.
• Watch for overdue filings or signs of payment defaults.