Company Number: 13897268

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

1. Credit Opinion: CONDITIONAL APPROVAL
   Azurak Ltd is a very recently established micro private company with limited operating history (incorporated 2022). The latest financials show improving net assets and a reduction in net current liabilities, yet it still reports a small working capital deficit (£380) as of the last year-end. The single director and shareholder demonstrates strong control, but the company’s micro scale and limited asset base constrain its financial resilience. Given no overdue filings or adverse director records and a modest but improving balance sheet, credit approval can be considered with conditions such as monitoring cash flow closely and limiting exposure until further trading history and stronger liquidity evidence are available.

2. Financial Strength:
   The company’s net assets increased from £2,954 in 2023 to £5,454 in 2024, reflecting retained earnings or capital injections. Fixed assets are minimal (£7k) and current assets reduced from £10,455 to £7,481, while current liabilities decreased significantly from £13,063 to £7,861. The reduction in current liabilities improved the working capital position but it remains slightly negative. Shareholders’ funds correspond to net assets, indicating no hidden liabilities. Overall, the balance sheet shows a small but positive trend in net worth, but the low asset base and working capital deficit suggest limited financial strength.

3. Cash Flow Assessment:
   Current liabilities exceed current assets by £380, indicating a working capital deficiency that might constrain liquidity. The company employs only one staff member, minimizing overheads. The absence of audit and the micro entity filing regime limit visibility into cash flow details, but the improvement in liabilities suggests some successful management of short-term obligations. The company should maintain tight control of receivables and payables to avoid cash flow stress. Until further financial data is available, cash flow remains a risk area.

4. Monitoring Points:

• Working capital trends and ability to maintain positive net current assets
• Revenue growth and profitability improvements in future filings
• Timely submission of accounts and confirmation statements
• Any changes in director or shareholder control
• Increase in fixed or current assets indicating business scale expansion
• Potential external financing or capital injections that strengthen liquidity