FARAH DEEN THERAPY SERVICES LTD

Executive Summary

Farah Deen Therapy Services Ltd is a recently formed private company with modest net assets but a negative working capital position raising short-term liquidity concerns. The company has maintained good compliance with filing obligations but lacks a track record to reliably assess operational sustainability. Further due diligence on cash flow and business contracts is recommended before investment consideration.

FARAH DEEN THERAPY SERVICES LTD - Analysis Report

Company Number: 14403160

Analysis Date: 2025-07-20 11:04 UTC

1. Risk Rating: MEDIUM
   The company shows a modest net asset base (£3,039) but has a working capital deficit of £341, indicating potential short-term liquidity challenges. Given the company’s recent incorporation (2022) and limited financial history, there is inherent uncertainty about its operational stability and cash flow sufficiency.

2. Key Concerns:

• Negative Net Current Assets: The company’s current liabilities (£1,930) exceed current assets (£1,589), which could constrain its ability to meet short-term obligations without additional financing or cash inflows.
• Limited Operating History: Incorporated in late 2022 with only one year of financial data, the company’s sustainability and revenue generation capacity remain unproven.
• Single Director and Shareholder Control: Full share and voting control by one individual (Ms Farah Deen) concentrates governance risk and could impact decision-making transparency.

3. Positive Indicators:

• No Overdue Filings: Annual accounts and confirmation statements are filed on time, reflecting sound regulatory compliance to date.
• Positive Net Assets and Shareholders’ Funds: Despite liquidity issues, net assets and equity are positive, suggesting the company is not technically insolvent.
• Modest Fixed Assets Base: Tangible assets of £3,380 indicate some investment in operational infrastructure, which may support service delivery.

4. Due Diligence Notes:

• Verify the company’s current cash flow situation and any arrangements for covering the working capital deficit.
• Investigate revenue streams and client contracts to evaluate business sustainability and growth prospects.
• Review director’s plans for capital injections or credit facilities to address liquidity constraints.
• Confirm no undisclosed liabilities or contingent risks exist beyond reported creditors.
• Assess related party transactions or any financial support from the sole shareholder.