Company Number: 12767625

Analysis Date: 2025-07-29 20:41 UTC

1. Risk Rating: MEDIUM

Justification: NABEEL UK SERVICES LTD is an active private limited company operating in the freight transport by road sector. While it is current with filings and not in liquidation, the company shows a declining net asset base over recent years and very low cash balances, which suggest liquidity constraints. The company’s small scale and single director structure also limit operational resilience.

2. Key Concerns:

• Liquidity Risk: Cash on hand is minimal (£67 in 2024), with current assets mainly composed of debtors (£8,985), indicating potential cash flow timing issues.
• Declining Net Assets: Net assets have decreased steadily from £7,690 in 2021 to £1,035 in 2024, signaling erosion of financial buffer.
• Single Shareholder/Director Control: Mr. Nabeel Afzaal controls 75-100% of shares and voting rights, concentrating decision-making and operational risk in one individual.

3. Positive Indicators:

• Up to Date Compliance: No overdue accounts or confirmation statements; filings are current.
• No Audit Requirement: Small company exemption indicates modest scale and presumably straightforward operations.
• Positive Net Current Assets: Despite decline, net current assets remain positive, suggesting the company can meet short-term obligations.

4. Due Diligence Notes:

• Investigate the nature and collectability of debtor balances to assess true liquidity.
• Review cash flow statements or internal management accounts for cash flow trends.
• Understand reasons for net asset decline—operational losses, asset disposals, or other factors.
• Assess operational dependencies given the single director/shareholder structure.
• Confirm compliance with industry regulations specific to freight transport.
• Verify absence of director disqualifications or regulatory sanctions against management.