Company Number: 13059320

Analysis Date: 2025-07-20 13:32 UTC

1. Risk Rating: LOW
   Farah Mitha Ltd demonstrates a solid net asset position and positive working capital, with no overdue filings or insolvency indicators. The company’s micro-entity filing status and consistent director presence suggest a stable, small-scale operation.

2. Key Concerns:

• Limited Scale and Resources: As a micro-entity with only one employee (the director), the business may have limited operational capacity and resilience to external shocks.
• Declining Fixed Assets: Fixed assets have decreased from £4,027 in 2022 to £1,943 in 2023, which may indicate limited investment in long-term operational infrastructure.
• Concentration Risk: Single director and sole employee (Dr. Farah Mitha) represents key person risk, potentially impacting continuity if unavailable.

3. Positive Indicators:

• Strong Net Current Assets: Net current assets grew substantially to £32,781 in 2023 from £10,725 in 2022, indicating good short-term liquidity and ability to meet current liabilities.
• Positive Net Assets and Equity Growth: Net assets increased from £13,732 in 2022 to £32,685 in 2023, reflecting improving financial strength and retained earnings.
• Up-to-date Compliance: No overdue accounts or confirmation statement filings, demonstrating governance discipline and regulatory compliance.

4. Due Diligence Notes:

• Review detailed profit and loss accounts to understand revenue streams, profitability, and cash flow generation.
• Investigate the reason behind the reduction in fixed assets and whether this impacts operational capacity.
• Assess contracts or client dependence, especially given the SIC classification as “Other human health activities,” to evaluate sustainability and growth potential.
• Confirm no undisclosed liabilities or contingent risks given the limited publicly available financial disclosures typical for a micro-entity.