5STARRAIL LTD

Executive Summary

5StarRail Ltd is a newly incorporated small construction entity with negative net assets and net current liabilities at its first year-end, indicating significant solvency and liquidity challenges. While compliance with filings and clear ownership are positives, the company’s minimal operational scale and negative equity warrant close scrutiny of its funding and business viability before investment consideration. Further due diligence is recommended to clarify the nature of intra-company balances and the company’s strategy for financial stabilization.

5STARRAIL LTD - Analysis Report

Company Number: 14958399

Analysis Date: 2025-07-29 20:59 UTC

1. Risk Rating: HIGH
   The company shows net current liabilities and negative shareholders' funds within its first financial year, indicating immediate solvency concerns. The minimal asset base and current liabilities exceeding current assets highlight liquidity risks.

2. Key Concerns:

• Negative Net Current Assets: The company has net current liabilities of £17, indicating an inability to cover short-term obligations with current assets.
• Negative Shareholders’ Funds: With equity at -£17, the company is technically insolvent on a balance sheet basis.
• Limited Operational History & Scale: Incorporated in mid-2023 and only one employee (the director), there is limited financial data or operational track record to evidence business sustainability.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with Companies House filing deadlines, reducing regulatory risk.
• Single Shareholder/Director Control: Clear ownership and control by Mr. Noordin Dahir may facilitate swift decision-making and strategic direction.
• Industry Focus: Engaged in railway construction (SIC 42120), a niche sector which may present growth opportunities if operations scale.

4. Due Diligence Notes:

• Investigate the nature of the £503 debtor balance classified as “Director’s current account” to understand if these are loans or receivables that will be recovered.
• Review the company’s business plan and funding sources to assess how it intends to address negative equity and working capital deficits.
• Confirm the scale and scope of operations, including contracts secured and pipeline, given the very small team and asset base.
• Monitor cash flow forecasts and any external financing arrangements to determine sustainability.
• Assess the director’s background and financial capacity to support the company through early-stage losses.