MAHDI BADJELMANE LTD

Executive Summary

MAHDI BADJELMANE LTD shows significant financial distress with negative net assets and liabilities exceeding current assets, reflecting a fragile financial position. Immediate capital infusion and stringent cash flow management are essential to stabilize the business and avoid insolvency risks. The company should also evaluate its operational model and seek professional advice to improve financial health.

MAHDI BADJELMANE LTD - Analysis Report

Company Number: 14368655

Analysis Date: 2025-07-29 13:15 UTC

Financial Health Assessment for MAHDI BADJELMANE LTD

---

1. Financial Health Score: D

Explanation:
The company shows significant signs of financial distress, with a negative net equity position and liabilities exceeding assets. The micro-entity’s extremely limited asset base (£1 current asset) against current liabilities (£479) and creditors falling due after more than one year (-£479) indicates a fragile financial state. The absence of employees and minimal operational scale further reflect an early-stage or inactive business with substantial financial vulnerability.

---

2. Key Vital Signs:

Metric	2024 Value	Interpretation
Current Assets	£1	Extremely low, almost negligible liquid resources.
Current Liabilities	£479	Obligations due within a year exceed liquid assets.
Net Current Assets	£1	Slightly positive but overshadowed by longer-term debts.
Creditors > 1 year	-£479	Significant long-term liabilities impacting solvency.
Total Net Assets	-£478	Negative equity signals insolvency risk.
Shareholders’ Funds	-£478	Shareholder investment is effectively eroded.
Employees	0	No workforce, indicating limited business activity.
Company Age	~2 years	Very young company, possibly still in setup phase.

Interpretation:

• The company has a "symptom of distress" with more liabilities than assets, indicating it owes more than it owns.
• The negligible current assets point to poor "cash flow health", raising concerns about meeting short-term obligations.
• Negative shareholders’ funds (equity) suggest the company is technically insolvent.
• No employees and minimal filings suggest limited business operations or early-stage development.

---

3. Diagnosis:

MAHDI BADJELMANE LTD currently exhibits a critical financial condition akin to a patient with low vital signs and underlying systemic weakness. The company’s balance sheet shows a net liability position with creditors outweighing assets, a classic sign of financial stress and potential insolvency risk. The lack of employee count and minimal operational infrastructure underscore a business either in infancy or with limited trading activity.

The diagnosis indicates the company is not financially healthy at present. Without intervention, it risks deteriorating further, potentially facing liquidity crises or inability to meet creditor demands.

---

4. Recommendations:

To improve the company's financial wellness, consider the following steps analogous to a treatment plan for a patient showing distress symptoms:

• Capital Injection:
  Infuse fresh equity or secure a loan to bolster the asset base and restore positive net assets. This will improve solvency and creditor confidence.

• Cash Flow Management:
  Establish strict cash flow controls and budgeting to avoid liquidity shortages. Prioritize payment of current liabilities to prevent penalties or enforcement actions.

• Operational Review:
  Assess the business model viability and consider scaling operations or pivoting if current activities are not generating revenue.

• Cost Control:
  Minimize non-essential expenses and overheads, especially given the zero employees and limited resources.

• Seek Professional Advice:
  Engage insolvency practitioners or financial advisors early to explore restructuring or turnaround strategies.

• Timely Compliance:
  Continue to file accounts and confirmation statements promptly to maintain good standing and avoid regulatory penalties.

---