Company Number: 14006524

Analysis Date: 2025-07-29 20:51 UTC

1. Credit Opinion: DECLINE
   AISHA SPICE LTD shows significant liquidity and solvency concerns. Despite being a micro-entity, the company’s balance sheet reveals negative net current assets of £21,077 in 2024 and negative total net assets of £12,997, reflecting a net liability position. This deteriorating financial position implies that current liabilities exceed current assets by a substantial margin, indicating poor short-term liquidity to meet obligations. The company’s ability to service debt or any credit facility is highly questionable without external support or capital injection. Given these factors and the lack of evidence of profitability or cash generation, extending credit is not advisable.

2. Financial Strength:
   The company’s fixed assets have increased modestly from £5,600 in 2023 to £8,080 in 2024, showing some investment in long-term assets. However, current assets remain minimal (£3,734 in 2024), while current liabilities remain high and largely unchanged (~£24,800). The net assets are negative and worsening, from -£17,538 in 2023 to -£12,997 in 2024, indicating erosion of equity and ongoing financial stress. The balance sheet structure suggests sustained losses or withdrawals reducing shareholder funds, undermining financial resilience.

3. Cash Flow Assessment:
   The company’s current liabilities significantly exceed current assets, resulting in a working capital deficit exceeding £21,000, which is critical for a micro-entity. This implies poor liquidity and potential difficulties in meeting short-term creditors and operational expenses. The reported increase in average employees from 1 to 3 may increase operating costs, further pressuring cash flow. No information is available on cash flow statements or profitability, but the balance sheet points to constrained liquidity and weak cash generation capabilities.

4. Monitoring Points:

• Monitor changes in net current assets and working capital closely to detect any improvement or further deterioration.
• Track profitability and cash flow generation in upcoming accounts to assess operational viability.
• Watch for any capital injections or loans from the significant shareholder or external parties to strengthen liquidity.
• Review director conduct and management decisions for evidence of proactive financial management or restructuring plans.
• Ensure timely filing of accounts and confirmation statements to maintain transparency and regulatory compliance.