QUANTUM PHARMACEUTICAL LIMITED
Company number 05240304 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Assessment: Quantum Pharmaceutical Limited
1. Credit Opinion: CONDITIONAL APPROVE
Reasoning: Quantum Pharmaceutical is a profitable, growing and well-established pharmaceutical manufacturer/supplier. Revenue increased 15% to £200.4m in FY24, and shareholders’ funds have strengthened materially from £15.4m in FY23 to £23.8m in FY24. The company has also moved from a negative equity position in 2020 to a solidly positive one, indicating a successful turnaround.
However, approval should be conditional because: - Operating profit fell 27% to £12.3m, with margin compression from 10% to 6%. - Gross profit declined despite higher revenue, pointing to cost inflation and transitional inefficiencies. - The balance sheet carries total liabilities of approximately £45.4m, and we cannot verify the split between trade payables, borrowings and other liabilities from the data provided. - The business is highly regulated and dependent on parent-group support.
Conditions to consider: - Satisfactory security and/or a parent company guarantee or letter of comfort from Target Healthcare Group. - Financial covenants, e.g. minimum EBITDA/interest cover and maximum net debt/EBITDA. - Quarterly management accounts and cash flow forecasts. - Annual review of margin recovery and capital expenditure returns.
2. Financial Strength
- Revenue growth is strong: FY24 revenue of £200.4m is up from £174.8m in FY23.
- **Profit