Company Number: 13026513

Analysis Date: 2025-07-20 14:31 UTC

Financial Health Assessment for HIJRA LOGISTICS LTD (Year ended 30 November 2023)

---

1. Financial Health Score: D

Explanation:
HIJRA LOGISTICS LTD is currently exhibiting signs of financial distress. The company’s net assets are negative and deteriorating over recent years, indicating liabilities exceeding assets—a symptom akin to a patient with low vital signs such as blood pressure or oxygen levels. The micro-entity scale limits detailed disclosures, but the persistent negative net asset position and minimal current assets reveal a fragile financial condition that needs urgent attention.

---

2. Key Vital Signs (Core Financial Metrics):

Metric	2023 Value (£)	Interpretation
Net Assets	-2,117	Negative net worth, indicating liabilities > assets; a key symptom of financial strain.
Current Assets	19	Extremely low current assets (cash/debtors), showing weak liquidity or “low blood volume.”
Current Liabilities	2,136	Liabilities due within one year exceed current assets by a large margin—“cash flow blockage.”
Net Current Assets	-2,117	Negative working capital, indicating difficulty meeting short-term obligations.
Share Capital	1	Minimal capital investment, limits financial resilience.
Employees	1 (director only)	Very small scale operation, possibly limiting revenue generation capacity.

---

3. Diagnosis:

• Symptoms of Distress:
  The company’s balance sheet shows persistent negative net assets for at least two years, suggesting ongoing losses or accumulated deficits. This is similar to a patient with a chronic illness where recovery has not yet been achieved. The minimal current assets and growing current liabilities point to liquidity issues—akin to a patient with weak pulse and inadequate circulation—raising concerns about the company’s ability to fund day-to-day operations without additional capital or financing.

• Underlying Issues:
  The company’s financial structure lacks buffer or reserves, with shareholder funds deeply negative. This could result from initial start-up losses or operational inefficiencies. The absence of significant fixed assets suggests limited investment in long-term resources which may impact future revenue potential.

• Operational Scale:
  Being a micro-entity with only one employee (the director), the company is likely early-stage or very lean. While this minimizes overheads, it also limits capacity for growth and cash generation.

• Prognosis:
  Without intervention, the company risks insolvency if liabilities continue to exceed assets and liquidity remains poor. However, the small scale and lack of overdue filings indicate that the company is still compliant and operational, providing a window for corrective measures.

---

4. Recommendations:

• Immediate Cash Flow Management:
  The company must improve its liquidity “circulation” urgently. This may involve negotiating extended payment terms with creditors, accelerating debtor collections, or securing short-term financing to clear current liabilities and avoid operational “shock.”

• Capital Injection:
  Consider additional equity investment or director loans to restore positive net assets and provide working capital. This fresh “nutrient supply” can stabilize the balance sheet.

• Cost Control and Revenue Enhancement:
  Review cost structures and identify any non-essential expenses to conserve cash. Explore opportunities to increase sales or diversify services within the transportation support sector to generate healthier cash inflows.

• Financial Monitoring:
  Implement regular financial health checks to monitor vital signs such as cash balances, liabilities, and profitability. Early detection of worsening symptoms can guide timely interventions.

• Professional Advice:
  Engage with financial advisors or insolvency practitioners if the condition worsens, to explore restructuring options or turnaround strategies before severe distress develops.

---