Company Number: 13144412

Analysis Date: 2025-07-20 13:52 UTC

1. Risk Rating: MEDIUM
   Justification: The company shows a recent improvement in net assets largely due to an increase in fixed assets, yet current liabilities remain significant relative to current assets, indicating potential liquidity constraints. The micro-entity status limits detailed financial disclosure, restricting full assessment.

2. Key Concerns:

• Liquidity Pressure: Current liabilities (£15,551) exceed current assets (£8,149) in 2024, resulting in a negative net current asset position (-£7,402), which may signal cash flow difficulties in meeting short-term obligations.
• Asset Composition Shift: The increase in fixed assets from zero to £17,728 in 2024, coupled with a decline in current assets, could suggest capital expenditure that may strain liquidity if not supported by revenue or financing.
• Limited Financial Transparency: Being a micro-entity, the company files minimal financial information, which restricts comprehensive risk evaluation, particularly concerning profitability, cash flows, and debt structure.

3. Positive Indicators:

• Improved Net Assets: Net assets rose from £1 in 2023 to £10,326 in 2024, indicating an improvement in the company’s equity position.
• Consistent Compliance: All filings, including accounts and confirmation statements, are up to date with no overdue submissions, reflecting good regulatory compliance.
• Stable Ownership and Management: A single director and controlling shareholder (Mr. Mohammed Jahangeer Ali) with aligned interests may facilitate swift decision-making and operational continuity.

4. Due Diligence Notes:

• Investigate the nature and funding source of the fixed assets acquired in 2024 to understand their impact on liquidity and operational capacity.
• Review cash flow statements or bank records if available to assess the company’s ability to meet short-term liabilities given the negative net current asset position.
• Confirm the company’s revenue trends and profitability since incorporation to evaluate operational sustainability beyond balance sheet metrics.
• Examine any contingent liabilities, related party transactions, or off-balance sheet obligations that may not be apparent in micro-entity filings.
• Verify the director’s background and any potential conflicts of interest, given sole control of the company.