HARANSI CONCEPTS LTD

Executive Summary

Haransi Concepts Ltd is financially distressed with negative net assets and critical liquidity issues, posing high credit risk. The company’s inability to cover current liabilities from current assets and absence of capital reserves suggests it cannot reliably service debt. Credit exposure should be declined unless significant improvements occur.

HARANSI CONCEPTS LTD - Analysis Report

Company Number: 14225507

Analysis Date: 2025-07-20 12:15 UTC

1. Credit Opinion: DECLINE
   Haransi Concepts Ltd demonstrates severe financial weakness with persistent and increasing net liabilities and negative shareholders’ funds. The company’s current liabilities substantially exceed its current assets, indicating a critical liquidity shortfall. Given the micro-entity scale, negative net assets of £5,447 and worsening net current liabilities of £8,020, the business is unlikely to service additional debt or meet credit obligations reliably. The absence of profitability or retained earnings and a single director structure further heightens credit risk. Without substantial capital injection or operational turnaround, lending exposure is not recommended.

2. Financial Strength:
   The balance sheet shows a deteriorating financial position over two years. Fixed assets have declined from £4,352 to £2,933, while current liabilities increased slightly to £8,031, resulting in a negative net asset position (£-5,447). Shareholders’ funds are deeply negative, reflecting cumulative losses or capital withdrawals. The company operates with minimal current assets (£11), insufficient to cover short-term liabilities. This signals a weak capital base and poor solvency metrics.

3. Cash Flow Assessment:
   Current assets of just £11 against current liabilities of over £8,000 indicate critical working capital deficiency and cash flow constraints. The negative net current assets (-£8,020) suggest the company cannot cover immediate obligations without external funding. No indication of cash reserves or receivables to support liquidity is apparent. The micro-entity status and sole director imply limited operational scale, limiting cash inflows potential.

4. Monitoring Points:

• Track future filings for improved net asset position or liquidity enhancement.
• Watch for capital injections or evidence of debt restructuring.
• Monitor director’s business activity and any changes in control or governance.
• Review payment performance on any trade or credit facilities if extended.
• Observe any material changes in financial reporting or audit status signaling business risks.