ANWAR SPINE AND INVESTMENT LIMITED

Executive Summary

ANWAR SPINE AND INVESTMENT LIMITED is a newly incorporated micro-entity with a weak financial position marked by negative equity and insufficient working capital. The company’s limited trading history and poor liquidity indicate high credit risk, and it currently lacks the financial strength to support credit facilities. Close monitoring of liquidity improvements and operational performance is essential before reconsidering credit approval.

ANWAR SPINE AND INVESTMENT LIMITED - Analysis Report

Company Number: 14737649

Analysis Date: 2025-07-29 13:14 UTC

1. Credit Opinion: DECLINE
   ANWAR SPINE AND INVESTMENT LIMITED shows a weak financial position with net current liabilities and negative shareholders' funds as of its first accounting period ending March 2024. The company’s current liabilities (£5,619) exceed current assets (£2,232), indicating poor short-term liquidity and potential difficulty meeting obligations as they fall due. Negative equity (£-3,387) signals that the company is technically insolvent on a balance sheet basis. Given it is a micro-entity with limited trading history (incorporated March 2023), there is insufficient evidence of financial stability or cash generation capacity. This raises significant credit risk, particularly for extending any meaningful credit facilities.

2. Financial Strength:
   The balance sheet is weak, with no fixed assets reported and minimal current assets. The current liabilities exceed current assets by around £3,387, resulting in negative working capital. Shareholders’ funds are negative, reflecting accumulated losses or initial financing shortfalls. The company’s micro size and recent incorporation mean it lacks a financial track record to demonstrate resilience or growth potential. The directors’ professions (sales director, doctor, company secretary) do not necessarily imply financial expertise or capital injection capability. Overall, the capital structure is fragile and dependent on external funding or shareholder support.

3. Cash Flow Assessment:
   No cash flow statement is available, but the low current asset base and negative net current assets strongly suggest constrained liquidity. With only £2,232 in current assets to cover £5,619 of short-term liabilities, the company may face cash flow pressures. The absence of fixed assets limits collateral availability for credit. The company employs on average 2 staff, which indicates some ongoing operating expenses. Without evidence of profitable operations, cash inflows may be insufficient to meet working capital needs, increasing risk of payment delays or defaults.

4. Monitoring Points:

• Improvement in net current assets and achieving positive working capital
• Regular timely filing of accounts and confirmation statements
• Evidence of revenue growth and profitability in subsequent periods
• Any capital injection or shareholder loans to improve liquidity and equity position
• Director conduct and governance, especially related to financial management and compliance
• Changes in creditor balances to assess payment behavior and credit exposure