Company Number: SC678948

Analysis Date: 2025-07-29 18:57 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Al Anqa Ltd is a small private limited company operating in management consultancy. While the company remains active and compliant with filing deadlines, its financials show weak liquidity and negative net current assets for the latest year, indicating potential short-term cash flow difficulties. The director’s loan account, although unsecured and interest-free, reduces external leverage but also reflects reliance on director support. The company has a modest net asset base and no audit requirement due to its size. Approval for credit facilities should be conditional on close monitoring of working capital improvements and the director’s ongoing financial backing.

2. Financial Strength:
   The balance sheet shows low fixed assets (£1,492) and a small net asset base of £693 as of 31 October 2023, down from £1,095 the previous year. Net current liabilities have worsened to £516 negative from £151 negative in 2022, reflecting current liabilities (£5,466) exceeding current assets (£4,950). The company carries a director loan balance of £1,970, reducing external creditor exposure. Retained earnings have declined, signaling reduced accumulated profits. Overall, the company’s financial strength is weak, with limited buffer to absorb shocks or meet short-term obligations without director support.

3. Cash Flow Assessment:
   Cash on hand has decreased significantly from £5,371 in 2022 to £2,486 in 2023, further tightening liquidity. Debtors have increased modestly, but not enough to offset cash outflows. Current liabilities remain high relative to current assets, indicating potential liquidity stress. The company’s reliance on director loans (interest-free, no fixed terms) provides some flexibility but underscores cash flow vulnerability. Working capital management and timely collection of receivables will be critical to maintaining operational continuity.

4. Monitoring Points:

• Monthly cash flow and liquidity position to detect shortfalls early.
• Changes in director loan account balances and any formalisation of repayment terms.
• Debtor ageing and collection efficiency to ensure receivables convert to cash promptly.
• Any increase in creditors or overdue liabilities that could signal operational or financial distress.
• Retained earnings trajectory and net asset changes to assess long-term sustainability.
• Compliance with filing deadlines and any changes in company status or director appointments.