AHMED CAPITAL LTD

Executive Summary

Ahmed Capital Ltd is a micro-entity with a stable asset base but high leverage and limited liquidity, making its ability to service debt contingent on asset sales or refinancing. While equity has increased modestly, the company shows minimal operational activity and tight working capital. Conditional credit approval is recommended with focused monitoring on liquidity and debt management.

AHMED CAPITAL LTD - Analysis Report

Company Number: 13190558

Analysis Date: 2025-07-19 12:44 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ahmed Capital Ltd shows a positive net asset position and modest equity growth; however, the company’s significant long-term liabilities relative to fixed assets and limited current assets raise concerns about liquidity and debt servicing capacity. The absence of employees and minimal working capital suggest limited operational activity and cash flow generation. Approval is conditional on close monitoring of cash flow and any additional financial support or income streams, as the company’s ability to meet ongoing obligations depends heavily on asset sales or refinancing.

2. Financial Strength:
   The balance sheet reflects fixed assets of £593k against long-term creditors of £570k, leaving a thin equity buffer of approximately £30k. Net current assets are positive but low at £6.8k, indicating tight short-term liquidity. The increase in shareholders’ funds from £13.5k to £29.8k year-on-year shows some capital injection or retained earnings, but overall financial strength is weak given the high gearing and reliance on fixed assets to cover long-term liabilities.

3. Cash Flow Assessment:
   Current assets of £11.6k primarily include cash or receivables but are insufficient relative to current liabilities of £4.8k and especially long-term liabilities. Since the company has no employees and minimal operational activity, cash inflows may be irregular or dependent on asset transactions. Working capital is positive but marginal, suggesting limited buffer to absorb cash flow shocks or meet unexpected expenses, which could strain debt servicing.

4. Monitoring Points:

• Track liquidity and working capital trends in subsequent accounts to ensure current assets and cash flows adequately cover liabilities.
• Monitor any changes in long-term debt levels or refinancing arrangements that impact solvency.
• Review any operational developments or revenue generation that could improve cash flow.
• Watch for timely filing of accounts and confirmation statements to avoid regulatory penalties.
• Evaluate director’s conduct and related party transactions given the small scale and owner-managed nature.