Company Number: 13509781

Analysis Date: 2025-07-29 12:26 UTC

1. Credit Opinion: DECLINE
   Adam & Nuh Limited demonstrates persistent net liabilities over the past three years, with net current liabilities worsening from -£310 in 2021 to -£1,981 in 2024. The company is a micro-entity operating in tax consultancy and bookkeeping, but it has not generated sufficient equity or liquidity to cover its short-term obligations. This weak financial position indicates a high risk of default on credit facilities. Without evidence of turnaround or external financial support, extending credit is not advisable.

2. Financial Strength:
   The balance sheet shows negative net assets and shareholders’ funds of £-1,981 at the latest year-end, reflecting accumulated losses or undercapitalization. Current liabilities exceed current assets, resulting in a negative working capital position. The total asset base is limited to current assets only, with no fixed assets reported, suggesting a lack of tangible collateral. This fragile financial structure limits the company’s ability to absorb financial shocks or invest in growth.

3. Cash Flow Assessment:
   The company’s current assets are predominantly short-term and insufficient to cover liabilities due within one year. Negative net current assets indicate potential liquidity stress. The absence of detailed profit and loss data prevents a thorough cash flow analysis, but the trend of increasing liabilities relative to assets signals operational cash flow challenges. Working capital management appears weak, raising concerns about timely payment of creditors and creditors’ confidence.

4. Monitoring Points:

• Track changes in net current assets and shareholders’ funds for signs of financial improvement.
• Review upcoming accounts filings for profit and loss data to assess operational performance and cash generation.
• Monitor director’s financial support or capital injections, as the sole director holds 75-100% control.
• Watch for any overdue filings or statutory compliance issues that might indicate governance or financial distress.
• Observe industry sector performance and regulatory changes in tax consultancy that could impact business viability.