Company Number: 15054048

Analysis Date: 2025-07-20 15:19 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Zeefah Pharma Limited is a recently incorporated micro-entity (August 2023) operating as a dispensing chemist. The company shows a negative net asset position (£-9,785) primarily due to a significant long-term creditor balance (£409,293) exceeding total assets less current liabilities (£399,508). While current assets exceed short-term creditors, the negative equity and high non-current liabilities suggest financial strain. The company’s ability to service debt depends on cash flow generation and support from its controlling shareholders, including Day Lewis Plc, which has substantial control and may provide indirect credit support. Given the early operational stage, modest staffing (2 employees), and immaterial profits reflected in micro-entity accounts, credit approval should be conditional on close monitoring of liquidity and prompt repayment of creditors.

2. Financial Strength:

• Fixed assets of £377,375 indicate investment in tangible assets, likely pharmacy premises and equipment.
• Current assets of £79,688 against current liabilities of £57,555 yield positive net working capital of £22,133, indicating short-term liquidity is adequate.
• However, creditors due after more than one year total £409,293, causing total net liabilities of £9,785 and negative shareholders’ funds. This negative equity position highlights reliance on external financing or shareholder support.
• The company has minimal accumulated reserves, typical for a new micro-entity.

3. Cash Flow Assessment:

• Positive net current assets suggest the company can meet short-term obligations.
• The large long-term creditor balance creates repayment pressure and potential refinancing risk.
• No detailed cash flow statement is provided, but the limited scale of operations and small employee base imply relatively low operating expenses.
• Ongoing cash flow generation will be critical to avoid liquidity stress, especially with the sizeable long-term liabilities.

4. Monitoring Points:

• Quarterly review of cash flow forecasts and working capital trends.
• Timely servicing and reduction of long-term creditors to improve equity.
• Profitability development and revenue growth indicators as the business matures.
• Directors’ and shareholders’ financial support or refinancing plans.
• Any changes in ownership/control or significant operational risks in the pharmacy sector.