MAKKAH GLOBAL LAWYERS & IMMIGRATION SERVICES LTD

Executive Summary

MAKKAH GLOBAL LAWYERS & IMMIGRATION SERVICES LTD is in the early stages of development with financial metrics showing typical start-up challenges, including negative working capital and equity deficit. While these symptoms suggest caution, the company’s young age and micro status mean these issues are not yet critical but require swift remedial action. Strengthening liquidity, controlling costs, and boosting revenues are essential to transition towards financial health.

MAKKAH GLOBAL LAWYERS & IMMIGRATION SERVICES LTD - Analysis Report

Company Number: 14438759

Analysis Date: 2025-07-20 19:04 UTC

Financial Health Assessment for MAKKAH GLOBAL LAWYERS & IMMIGRATION SERVICES LTD
(Assessment based on financial year ending 31 October 2023)

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1. Financial Health Score: D

Explanation:
The company shows early signs of financial distress with negative net current assets and net assets shortly after incorporation. While this is not uncommon for a start-up micro entity in its first year, the negative working capital ("symptom of distress") and shareholder funds indicate the company is not currently in a financially healthy state. Immediate attention is required to stabilize liquidity and build a stronger equity base.

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2. Key Vital Signs: Critical Financial Metrics and Interpretation

Metric	Value (£)	Interpretation
Fixed Assets	2,500	Minimal investment in long-term assets, typical for a new micro entity
Current Assets	2,500	Limited liquid resources available
Current Liabilities	5,225	Short-term debts exceed liquid assets, causing negative working capital
Net Current Assets	-2,725	"Unhealthy cash flow" warning sign; liabilities exceed short-term assets
Total Assets Less Current Liabilities	-125	Negative net assets indicate liabilities slightly exceed assets
Shareholders' Funds	-125	Equity deficit suggests accumulated losses or start-up costs not yet covered by profits
Employee Count	1	Very small operational scale, limiting revenue generation capacity

Additional Context:

• The company is a micro entity incorporated in late 2022, operating in legal and educational support services.
• The director and sole significant controller is Mr Naveed Akhtar, holding full ownership and control.

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3. Diagnosis: What the Financial Data Reveals About Business Health

The "vital signs" reveal symptoms typical of an early-stage start-up operating at a loss or incurring initial expenses that surpass current income. Negative net current assets and shareholders' funds indicate the business is currently overextended in terms of short-term obligations compared to available liquid assets. This "cash flow distress" could threaten operational continuity if unaddressed.

However, given the company is less than two years old and classified as a micro entity, this situation may reflect the natural initial investment and ramp-up phase rather than chronic financial illness. The minimal fixed assets and small scale of operations suggest the business is still in its infancy and may rely heavily on owner funding or external financing to build a stable financial foundation.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Working Capital Management:
  Prioritize increasing current assets, particularly cash or receivables, to cover short-term liabilities. This may involve accelerating client payments, better credit control, or negotiating longer payment terms with suppliers.

• Capital Injection or Financing:
  Consider an equity injection or short-term loan to strengthen shareholders’ funds and reduce negative net assets. This "financial boost" will provide breathing room to manage expenses and invest in growth.

• Cost Control:
  Monitor and minimize operating expenses to slow cash burn. Given only one employee, review all costs carefully to avoid unnecessary outflows.

• Revenue Growth Focus:
  Develop a clear plan to increase client acquisition in legal and immigration services, leveraging the director’s expertise to generate steady income flows.

• Financial Monitoring:
  Establish regular cash flow forecasting and financial reviews to detect early warning signs ("symptoms") and respond proactively.

• Seek Professional Advice:
  Engage with financial advisors or accountants to assist with budgeting, tax planning, and exploring government support schemes available to small businesses.

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