SPARTA BIODISCOVERY LIMITED

Executive Summary

Sparta Biodiscovery Limited shows a solid and growing financial base with strong liquidity and net assets for a micro-entity. The company’s management appears stable and capable, supporting approval for credit facilities within prudent limits. Continuous monitoring of working capital trends and compliance filings is recommended to ensure ongoing creditworthiness.

SPARTA BIODISCOVERY LIMITED - Analysis Report

Company Number: 13952962

Analysis Date: 2025-07-20 14:50 UTC

1. Credit Opinion: APPROVE

Sparta Biodiscovery Limited demonstrates a strong financial position for a micro-entity with consistent growth in net assets and working capital. The company’s balance sheet shows robust net current assets and a healthy increase in fixed assets, indicating reinvestment and business expansion. There are no overdue filings or adverse director conduct records, and the management team includes experienced professionals with significant shareholding, suggesting sound stewardship. Given these factors and the nature of their research-focused business, they appear capable of servicing credit facilities, albeit within limits appropriate for a micro-entity.

2. Financial Strength:

• The company’s net assets rose from £978,902 in 2023 to £1,507,816 in 2024, reflecting strong equity growth.
• Fixed assets increased substantially from £64,007 to £167,810, indicating capital investment in equipment or property.
• Current assets nearly doubled from £936,060 to £1,696,820, while current liabilities increased moderately from £21,165 to £356,814.
• The net current assets (working capital) remain strong at £1,340,006, demonstrating good short-term financial resilience.
• Shareholders’ funds fully support the asset base, with no indication of debt overhang or financial distress.

3. Cash Flow Assessment:

• The company’s large net current assets position suggests comfortable liquidity and the ability to meet short-term obligations.
• Increase in current liabilities may reflect growth in operational scale, but is well covered by current assets.
• Given the micro-entity status and the nature of the business (biotech R&D), cash flow may be supplemented by grants or investor funding; however, no direct cash flow data is provided.
• The increase in employees from 7 to 9 indicates controlled operational scaling consistent with current asset growth.

4. Monitoring Points:

• Monitor the trend in current liabilities to ensure they do not outpace current assets, which could strain liquidity.
• Watch for timely filing of future accounts and confirmation statements to maintain regulatory compliance.
• Track any changes in shareholding or director appointments that may affect governance or control.
• Observe cash flow statements when available to confirm operational cash generation or reliance on external funding.
• Assess the impact of R&D expenditure and any dependency on grants or investor capital, as this influences repayment capacity.