TRIPLE HELIX BIOTECHNOLOGY LTD

Executive Summary

Triple Helix Biotechnology Ltd is a start-up biotech company with a stable but modest asset base and low liabilities. The company is currently loss-making with a significant drop in cash reserves over the past year, highlighting liquidity risk. Credit approval is conditional on continued monitoring of cash flow, profitability improvements, and management’s ability to secure additional funding to support ongoing operations.

TRIPLE HELIX BIOTECHNOLOGY LTD - Analysis Report

Company Number: 13749240

Analysis Date: 2025-07-29 12:56 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Triple Helix Biotechnology Ltd is a young private limited company engaged in biotechnology R&D. The company shows a stable operational base with low current liabilities and positive net assets, indicating initial financial stability. However, the sharp decline in current assets and cash balances over the last year raises concerns about liquidity and cash burn. The company is currently loss-making, as reflected by the substantial negative profit and loss reserve. Approval is conditional on monitoring future cash flows and profitability improvements, supplemented by management plans to secure further funding or revenue generation to sustain operations.

2. Financial Strength:

• Net assets decreased from £230,573 in 2022 to £103,340 in 2023, mainly due to an increased accumulated loss (-£196,760 vs. -£69,527).
• Shareholders’ funds remain at £299,950, supported by a share premium account, but the loss reserve is eroding equity.
• Fixed assets are modest (£49,113) and mostly tangible, related to lab and office equipment, reflecting investment in operational capability.
• Current liabilities are low (£5,520), indicating limited short-term creditor pressure.
  Overall, the balance sheet is solvent but shows signs of strain from ongoing operational losses and declining liquidity.

3. Cash Flow Assessment:

• Cash at bank fell significantly from £159,317 in 2022 to £39,584 in 2023, signaling high cash usage or limited inflows.
• Net current assets are positive (£54,227), but down from £178,683 the previous year, driven by reduced cash and debtors.
• Debtors also declined (£20,163 vs £25,147), which may reflect reduced sales or tighter credit policies.
• The company’s working capital remains positive, but the sharp cash depletion suggests cash flow management should be closely watched to avoid liquidity issues.

4. Monitoring Points:

• Track cash flow forecasts and actual cash balances to ensure sufficient liquidity.
• Monitor operating expenses and R&D spend relative to available funds.
• Assess progress in revenue generation or funding rounds to offset losses.
• Watch for any material changes in creditors or emerging financial obligations.
• Review management actions addressing profitability and cash burn.