HARTEJ OFF LICENCE & CONVENIENCE LTD

Executive Summary

HARTEJ OFF LICENCE & CONVENIENCE LTD is a recently incorporated micro-entity with positive net assets but a notable working capital deficit, raising liquidity concerns. The company demonstrates good regulatory compliance but limited operational history and concentrated ownership. Further due diligence on cash flow and liability structure is recommended to better assess short-term financial stability.

HARTEJ OFF LICENCE & CONVENIENCE LTD - Analysis Report

Company Number: 14554876

Analysis Date: 2025-07-20 11:16 UTC

1. Risk Rating: MEDIUM

The company shows modest net assets (£9,005) but has negative net current assets (-£33,405), indicating a working capital deficit that poses potential liquidity concerns. Given its recent incorporation in late 2022 and the micro-entity scale, there is limited financial history to fully assess operational stability. No overdue filings or regulatory compliance issues are evident.

2. Key Concerns:

• Working Capital Deficit: Current liabilities (£69,922) exceed current assets (£36,517) by a significant margin, suggesting potential difficulties in meeting short-term obligations.
• Limited Financial History: Being incorporated only in December 2022, the company lacks a track record of financial performance, increasing uncertainty for investors.
• Concentration of Control: Single individual (Mr. Narinderjit Malhi) holds 75-100% of shares and voting rights, which may present governance risks related to decision-making and oversight.

3. Positive Indicators:

• No Filing Delinquencies: Accounts and confirmation statements are up to date, reflecting good compliance with statutory requirements.
• Positive Net Assets: Despite working capital concerns, the company has positive net assets (£9,005), indicating some capital buffer.
• Small Employee Base: With only 2 employees, the company likely maintains low fixed operating costs, potentially aiding cash flow management.

4. Due Diligence Notes:

• Examine Cash Flow: Request detailed cash flow statements or bank statements to verify the company’s ability to cover short-term liabilities.
• Understand Liability Composition: Clarify what comprises the current liabilities—trade creditors, loans, or other payables—and their payment terms.
• Review Business Plan & Market Position: Assess operational sustainability given the company’s age and sector (retail sale of food, beverages, tobacco).
• Confirm Director’s Background: Conduct background checks on Mr. Malhi to evaluate management competence and any history of regulatory or financial issues.