MINARAH ACADEMY LTD

Executive Summary

MINARAH ACADEMY LTD’s financial profile reveals negative net assets and worsening liquidity pressures, indicating poor financial health and an inability to support credit facilities. The company shows limited operational activity and no employees, heightening credit risk. Credit approval is not recommended without significant financial restructuring and improved cash flow performance.

MINARAH ACADEMY LTD - Analysis Report

Company Number: 12677626

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion: DECLINE. MINARAH ACADEMY LTD demonstrates significant financial weakness. The company's net current liabilities have increased markedly from £3,394 in 2023 to £2,729 in 2024 (reported as negative net current assets), indicating an inability to cover short-term obligations from current assets. Additionally, the company reports negative total net assets of £1,903, showing an overall deficit position and erosion of equity. The absence of employees and minimal turnover data suggest limited operational activity and revenue generation. Given these factors, the company is unlikely to service debt or sustain credit facilities without substantial improvement.

2. Financial Strength: The balance sheet is weak. Fixed assets are minimal (£826), and current assets are insufficient (£2,491) relative to current liabilities (£5,220). The company’s net asset position is negative, reflecting accumulated losses or capital depletion. The micro-entity classification and minimal share capital (£5) further underscore limited financial capacity. There is no indication of reserves or retained earnings to absorb financial shocks. The company’s financial trajectory is declining, with net assets falling from £2,422 in 2023 to negative £1,903 in 2024.

3. Cash Flow Assessment: Liquidity is a concern. With current liabilities more than double current assets, working capital is negative, impairing the company’s ability to meet short-term obligations. The absence of employees suggests limited operational cash inflows, and no data indicates positive cash flow generation. The reported figures imply the company relies on external funding or director support to manage obligations, which is unsustainable for credit risk purposes.

4. Monitoring Points:

• Monitor cash flow statements and operating income for evidence of turnaround.
• Track changes in net current assets and net liabilities to assess improving liquidity.
• Review any capital injections or shareholder loans that may support solvency.
• Watch for overdue filings or director changes that could signal distress.
• Evaluate future annual accounts for evidence of revenue growth or expense control.