Company Number: 13455529

Analysis Date: 2025-07-20 18:06 UTC

1. Risk Rating: MEDIUM
   The company shows improving net assets and working capital, indicating some financial stability. However, as a micro-entity with relatively low fixed assets and moderate current liabilities, there is inherent risk related to limited financial buffers. The rapid growth in liabilities and current assets requires monitoring to ensure liquidity is maintained.

2. Key Concerns:

• Rapid increase in current liabilities: From £20,403 in 2023 to £65,286 in 2024, a more than threefold increase that could pressure cash flows if receivables or inventory are not converted quickly.
• Limited fixed assets base: Fixed assets remain low (£4,410 in 2024), indicating the company may rely heavily on inventory or receivables, which can be less liquid.
• Concentration of control: One individual (Mr. Amjad Gul Sheikh) owns 75-100% shares and controls the board, which may raise governance concerns for institutional investors seeking diversified oversight.

3. Positive Indicators:

• Increasing net assets and shareholders' funds: Up from £2,445 in 2023 to £17,696 in 2024, reflecting retained profits or capital injections.
• Positive net current assets: £13,286 in 2024, suggesting that the company has more short-term assets than liabilities, which supports short-term liquidity.
• Employee growth: From 3 to 9 employees in one year, indicating operational expansion and possibly increased revenue capacity.
• Compliance: All statutory filings and accounts are up to date, with no overdue returns or accounts, indicating good regulatory compliance.

4. Due Diligence Notes:

• Examine cash flow statements: To verify whether the increase in current liabilities is matched by sufficient cash inflows and quick turnover of receivables/inventory.
• Review debtor and creditor aging: To assess the quality of current assets and the risk of overdue payables.
• Evaluate client and supplier concentration: Given the wholesale and retail electronics focus, to understand market risks and dependency.
• Assess governance structure: Clarify any additional directors or controls beyond the sole director to mitigate single-person control risks.
• Understand revenue growth and profitability: As the accounts provided are balance sheets only, profit & loss data would help evaluate operational sustainability.