Company Number: 12664108

Analysis Date: 2025-07-20 15:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Ashteck Limited is a micro private limited company in retail of second-hand goods with a very limited asset base and ongoing net liabilities. The company shows improvement in working capital and net current assets in the latest financial year but remains with negative net assets and shareholder funds, indicating cumulative losses. The business is still dependent on the sole director and shareholder, Mr Muhammad Arshad, who exercises full control. Due to the small scale, marginal positive working capital in the latest year, and substantial historical losses, credit facilities may be extended with caution and subject to close monitoring of cash flow and profitability improvements.

2. Financial Strength:
   The balance sheet shows net current assets of £306 as of 30 June 2024, a significant improvement from previous years’ negative working capital of £4,942 and £7,942 in 2022 and 2023 respectively. However, net liabilities still stand at £234, reflecting accumulated losses carried in shareholder funds (negative £234). Fixed assets appear negligible or zero. The company is barely breaking even on a balance sheet basis and has no equity buffer to absorb unexpected shocks. The micro-entity status and small asset base limit financial flexibility.

3. Cash Flow Assessment:
   Current assets are low at £4,568, with current liabilities at £4,262, indicating tight liquidity but a marginally positive net working capital position. The company must carefully manage cash inflows and outflows to meet obligations. The small scale of operations and reliance on a single director with minimal staff (1 employee including the director) suggests limited operational complexity but also limited capacity to scale or absorb downturns. No audit was required or conducted, so reported figures should be treated with standard micro-entity prudence.

4. Monitoring Points:

• Continued trend in improving net current assets and profitability to shift net liabilities into positive shareholder equity.
• Cash flow metrics and ability to meet short-term liabilities without external funding.
• Stability of director involvement and any changes in management or ownership structure.
• Timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Business performance trends in the niche second-hand goods retail market, especially given economic conditions affecting consumer spending.