Company Number: 13147069

Analysis Date: 2025-07-29 19:21 UTC

Credit Opinion:
DECLINE. Langari Ltd demonstrates persistent negative net current assets and shareholders' funds, indicating ongoing working capital deficits and erosion of equity. The company is unable to cover its short-term liabilities from current assets, signaling liquidity stress and limited capacity to service debt. The absence of employees and minimal cash reserves further restrict operational resilience. Without a clear turnaround or capital injection plan, extending credit poses a high risk.

Financial Strength:
The balance sheet reveals net current liabilities of £9,584 for the year ended 31 January 2024, which is a slight improvement from £11,645 the previous year but still negative. Shareholders’ funds remain negative at £9,585, implying accumulated losses since incorporation in 2021. Fixed asset data is not provided, suggesting an asset-light business model focused on wholesale trade. The consistent negative equity position and reliance on short-term creditors undermine financial stability.

Cash Flow Assessment:
Cash on hand is low at £3,435, a modest increase from £1,463 last year, but insufficient relative to current liabilities of nearly £50,000. Debtors are minimal (£777), limiting immediate inflow. The company relies heavily on trade creditors (£23,342) and other creditors (£16,644) to finance operations. The reported bank overdraft/loan of £10,010 adds financial burden. Negative working capital and limited liquidity indicate potential difficulties in meeting short-term obligations without external support or improved cash generation.

Monitoring Points:

• Monitor cash flow closely for any improvement in liquidity and debtor collection efficiency.
• Watch for reduction in trade and other creditors to avoid supplier pressure.
• Track any equity injections or restructuring plans to restore positive net assets.
• Observe changes in turnover and profitability metrics (not disclosed here) to assess business viability.
• Review director actions and any new filings for signs of financial distress or recovery initiatives.