AL SAIHATI INTERCULTURAL CENTER LTD.

Executive Summary

AL SAIHATI INTERCULTURAL CENTER LTD. is an active private limited company engaged in educational support services but is currently facing significant solvency and liquidity challenges, highlighted by negative net assets and heavy reliance on director loans. While regulatory compliance and clear ownership provide some stability, the financial position raises substantial risk concerns that require close scrutiny of funding and operational sustainability. Further due diligence on cash flow and going concern assumptions is essential before considering investment.

AL SAIHATI INTERCULTURAL CENTER LTD. - Analysis Report

Company Number: 14163851

Analysis Date: 2025-07-29 17:41 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress characterized by persistent negative net assets and net current liabilities, indicating an inability to meet short-term obligations without additional funding.

2. Key Concerns:

• Negative Net Assets and Net Current Assets: As of June 2024, the company’s net assets stand at approximately -£35,842 and net current assets at -£36,189, reflecting ongoing losses and potential insolvency risks.
• High Director Loans: Current liabilities predominantly comprise loans from the director (£36,985 in 2024), suggesting reliance on related-party funding rather than external financing, which may not be sustainable long-term.
• Minimal Cash Reserves: The company holds very limited cash (£1,035), insufficient to cover immediate liabilities, raising concerns about liquidity and operational cash flow management.

3. Positive Indicators:

• Active Status with No Overdue Filings: The company is actively trading and compliant with filing deadlines for accounts and confirmation statements, demonstrating regulatory adherence.
• Clear Ownership and Control: Full control and shareholding by a single director/PSC provides streamlined decision-making and accountability.
• Business Sector: Operating in educational support and related services with an active website presence may indicate ongoing business activities and potential for revenue growth.

4. Due Diligence Notes:

• Examine Cash Flow Projections and Funding Plans: Investigate how the company plans to address its negative working capital and whether additional director loans or external funding are expected.
• Review Director’s Financial Support: Assess the sustainability and terms of director loans, including whether they are repayable or convertible to equity.
• Evaluate Going Concern Assumptions: Despite the director’s statement of going concern, independent assessment of the company’s ability to continue operations given its financial position is warranted.
• Operational Performance and Revenue Trends: Obtain detailed turnover and profit and loss data to understand operational viability beyond balance sheet snapshots.
• Potential Liabilities and Contingent Risks: Confirm that no hidden or contingent liabilities exist that could exacerbate financial pressures.