MOHAMMED ABDUR RAHMAN SERVICES LTD

Executive Summary

Mohammed Abdur Rahman Services Ltd is a micro-entity with improving financial strength and adequate liquidity, demonstrating capability to meet short-term obligations. Despite its limited trading history and small scale, the company shows promising growth in net assets and working capital. Credit approval is recommended with ongoing monitoring of operational and financial developments.

MOHAMMED ABDUR RAHMAN SERVICES LTD - Analysis Report

Company Number: 14294272

Analysis Date: 2025-07-20 14:18 UTC

1. Credit Opinion: APPROVE with conditions. Mohammed Abdur Rahman Services Ltd is a recently incorporated micro-entity (since August 2022) showing healthy growth in net assets and working capital over two years. The company demonstrates adequate short-term liquidity and positive equity, indicating capability to meet current obligations. However, as a very small operation with only one employee and limited financial history, caution is warranted. Credit should be extended with monitoring of cash flow and operational scale to mitigate risks from limited trading track record and small asset base.

2. Financial Strength: The company’s balance sheet is improving, with net assets rising from £798 at 31 August 2023 to £6,711 at 31 August 2024. Current assets increased substantially to £9,096, while current liabilities remain low at £2,372, resulting in a strong net current asset position of £6,724. The absence of fixed assets or long-term liabilities simplifies the financial structure but also indicates limited capital investment. Shareholders’ funds mirror net assets, reflecting no debt financing. Overall, the financial position is stable but modest, typical for a micro entity in early growth phase.

3. Cash Flow Assessment: The positive net current assets and low creditor balances indicate the company maintains adequate liquidity to cover short-term liabilities. The increase in current assets suggests improved cash or receivables, supporting operational cash flow. However, the small scale and lack of detailed cash flow statements limit insight into ongoing cash generation. Working capital appears sufficient for current operations, but the business’s ability to sustain or grow cash flow under stress remains unproven.

4. Monitoring Points:

• Continued growth in net assets and current assets to confirm financial trajectory.
• Timely filing of accounts and confirmation statements to maintain compliance.
• Expansion of employee base or fixed assets as an indicator of business scaling.
• Cash flow consistency and receivables turnover to ensure liquidity.
• Any changes in directors or ownership that might affect governance or credit risk.