Company Number: 13134601

Analysis Date: 2025-07-20 12:42 UTC

1. Credit Opinion: DECLINE
   HIJAZ LIMITED shows very weak financial health. The company’s net current assets have deteriorated from a positive £805 in 2023 to a negative £491 in 2024, indicating current liabilities now exceed current assets. This signals liquidity stress and potential difficulty in meeting short-term obligations. The company’s share capital is nominal (£1), and the negative net assets position suggests erosion of equity. There is no fixed asset base to support lending, and the company operates as a micro entity with minimal scale and financial history. Given these factors, the ability to service debt or credit facilities is highly uncertain and risky.

2. Financial Strength:
   Balance sheet analysis reveals no fixed assets and a small base of current assets (£27,607 in 2024). However, current liabilities have increased sharply to £28,098, pushing net current assets into negative territory. The shareholder funds have turned negative (£-491), reflecting losses or accumulated deficits eroding equity. The business lacks tangible collateral and has a thin capital base. The single director operates the company as a micro-entity, with limited financial resources and no apparent growth in equity or profitability.

3. Cash Flow Assessment:
   The negative net current assets indicate a working capital deficit. This suggests the company may struggle to convert assets into cash quickly enough to meet short-term liabilities. With only 1 employee and no fixed assets, operational scale is minimal, likely limiting cash inflows. Without detailed cash flow statements, the trend of increasing current liabilities versus current assets implies cash flow pressure. The micro classification and minimal capital investment further raise concerns about liquidity resilience.

4. Monitoring Points:

• Track quarterly or interim updates on current assets and liabilities to detect further liquidity deterioration.
• Monitor any changes in director or capital structure that might improve financial stability.
• Watch for timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Review any new financing or credit facilities sought and assess repayment sources.
• Observe any operational changes or business model adaptations that could improve cash generation.