Company Number: 12710278

Analysis Date: 2025-07-29 20:07 UTC

Credit Opinion:
DECLINE. Halal Origins Limited shows significant financial distress with persistent and deepening net current liabilities and negative shareholders' funds. The company's balance sheet evidences a weakening capital structure and inadequate liquidity, raising material doubts about its ability to meet short-term obligations and service any additional credit facilities. The recent director turnover and ongoing losses further undermine confidence in management stability and business resilience.

Financial Strength:
The company’s net current liabilities have increased from £61,197 in 2023 to £96,737 in 2024, indicating worsening working capital deficits. Shareholders' funds are deeply negative, deteriorating from -£28,718 in 2023 to -£64,013 in 2024, reflecting accumulated losses and eroded equity. Fixed assets remain modest (£32,824 in 2024) but are insufficient to offset the liabilities. The negative total assets less current liabilities of -£63,913 confirms a weak capital base and potential solvency concerns.

Cash Flow Assessment:
Cash reserves have plummeted from £24,004 in 2023 to £3,783 in 2024, severely restricting operational liquidity. Debtor balances are stable but relatively low (£6,613). The large current liabilities (£107,133) vastly exceed liquid assets, indicating a high risk of default on short-term payables. The steep decline in cash suggests negative operating cash flow or significant cash outflows, which jeopardizes the company’s ability to support ongoing operations or new debt service.

Monitoring Points:

• Cash flow trends and bank balances monthly to detect liquidity crises.
• Creditor aging to assess risk of overdue payments or supplier pressure.
• Profit and loss performance in upcoming periods to evaluate if losses continue or reverse.
• Director changes and governance stability affecting operational control.
• Any fresh capital injections or restructuring efforts to improve solvency.

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