Company Number: 12657316

Analysis Date: 2025-07-20 16:16 UTC

Credit Opinion:
DECLINE. Akram Mansion Ltd exhibits significant financial distress despite asset growth, with net liabilities and negative equity reported in the latest accounts. The company’s net current liabilities have increased substantially, indicating liquidity issues that impair its ability to service debt. Without evidence of consistent profitability or improved working capital management, the risk of default is high.

Financial Strength:
The balance sheet shows fixed assets increased from £316k (2023) to £557k (2024), indicating property acquisitions or capital investment. However, current liabilities nearly doubled from £376k to £712k, while current assets (cash) only modestly increased from £16k to £86k. Net current assets declined sharply from a positive £360k in 2023 to a negative £625k in 2024. Overall, net assets moved from positive £44k to negative £68k, reflecting accumulated losses or revaluation impacts. Shareholders’ funds are negative, which is a red flag for solvency.

Cash Flow Assessment:
The company’s cash position is weak relative to its short-term liabilities. Although cash increased to £86k, it is insufficient compared to current liabilities of £712k, resulting in a significant working capital deficit. The negative net current assets suggest the company may struggle to meet immediate obligations without refinancing or asset disposals. The absence of depreciation on fixed assets (land and buildings) is typical, but the lack of profit retention erodes financial resilience.

Monitoring Points:

• Track net current assets and liquidity ratios in future filings to assess changes in working capital management.
• Monitor cash flow statements (when available) for operational cash generation or reliance on external financing.
• Review changes in fixed asset valuations and any related debt servicing costs.
• Watch for improvements in profitability or equity injections that could restore positive net assets.
• Assess director and ownership changes or strategic plans to improve financial stability.