MARLA INVESTMENTS LIMITED

Executive Summary

MARLA INVESTMENTS LIMITED shows a stable equity position but exhibits warning signs in liquidity management due to volatile and relatively high current liabilities versus current assets. The company complies with filing requirements and has clear ownership, but operational scale is minimal. Further investigation into short-term obligations and cash flows is recommended to fully assess financial resilience.

MARLA INVESTMENTS LIMITED - Analysis Report

Company Number: 13177301

Analysis Date: 2025-07-29 17:16 UTC

1. Risk Rating: MEDIUM
   The company maintains net positive assets and shareholders' funds with no long-term liabilities, suggesting solvency. However, recent deterioration in net current assets and sizeable fluctuations in current liabilities indicate potential liquidity stresses that merit attention.

2. Key Concerns:

• Liquidity deterioration: Net current assets declined from a positive £8,745 in 2023 to a negative £4,347 in 2024, largely due to an increase in current liabilities relative to current assets. This raises questions about short-term cash flow sufficiency.
• Volatile current liabilities: The current liabilities have fluctuated significantly over the years—£177k in 2021, £22k in 2022, £338k in 2023, and £31k in 2024—indicating inconsistent management of short-term obligations or possible timing issues in creditor payments.
• No employees and micro-entity status: The absence of employees points to a very small scale of operations, which may limit operational capacity and diversification of income streams, increasing operational risk.

3. Positive Indicators:

• Consistently positive net assets: The company has maintained net assets above £120k across the latest financial years, indicating a stable equity base.
• No overdue filings: Both accounts and confirmation statements are filed on time, evidencing regulatory compliance and good governance in statutory matters.
• Single controlling shareholder with clear governance: Shareholding and directorship are consolidated under Mrs. Navkiran Saggu and Ms. Marla Ubhi, reducing potential conflicts and ensuring decision-making clarity.

4. Due Diligence Notes:

• Clarify the nature and cause of the fluctuations in current liabilities, especially the spike in 2023, and confirm whether these are payable on demand or have staggered terms.
• Investigate cash flow statements (if available) to assess liquidity trends beyond balance sheet snapshots.
• Understand the company's revenue model and operational activities given zero employees and the micro-entity classification; determine if key activities are outsourced or conducted by directors.
• Confirm related party transactions or intra-group balances, especially given the significant control by two related individuals.
• Review any contingent liabilities or off-balance sheet commitments not reflected in the micro-entity accounts.