NAFEES UR REHMAN LTD

Executive Summary

NAFEES UR REHMAN LTD is a micro-entity in its first year with minimal turnover and a slight operating loss. Its very limited asset base and weak financial metrics indicate it currently lacks the capacity to service debt or withstand economic challenges. Due to insufficient financial strength and cash flow, credit facilities are not recommended at this stage.

NAFEES UR REHMAN LTD - Analysis Report

Company Number: 15054041

Analysis Date: 2025-07-20 13:19 UTC

1. Credit Opinion: DECLINE
   NAFEES UR REHMAN LTD is a newly incorporated micro-entity with minimal financial history and limited scale of operations. The company reported a small turnover of £14,049 over a 13-month period ending August 2024 but incurred a loss of £431. The very low asset base (£501 net assets) and lack of employees indicate minimal operational capacity and limited financial resilience. With no audit and limited transparency typical of micro-entities, there is insufficient evidence of sustainable profitability or cash flow generation to support debt repayment. The company’s early stage and weak financial position suggest it cannot currently service debt or withstand economic stress, leading to a decline recommendation for credit facilities.

2. Financial Strength:
   The balance sheet reveals extremely limited financial strength. Current assets stand at £500 with no fixed assets reported, and net current assets are positive but negligible at £500. Total net assets and shareholders' funds are only £501, reflecting a very small capital base. The company’s capital is primarily share capital of £1, indicating minimal equity buffer. Absence of tangible or intangible assets and lack of retained earnings highlight a fragile financial footing. The small scale and negative profit position reduce confidence in the company’s ability to build financial strength in the near term.

3. Cash Flow Assessment:
   The reported net current assets of £500 suggest a small working capital buffer but provide little comfort regarding liquidity. The company’s loss of £431 indicates that operating cash flow is likely negative or marginal at best. No employees and no off-balance sheet liabilities help limit cash demands, but the minimal turnover and expenses close to revenue imply tight cash management is required. The absence of cash flow statements limits detailed analysis, but the available data point to weak cash generation and limited liquidity to fund operations or service external debt.

4. Monitoring Points:

• Revenue growth and profitability trends in subsequent filings to assess business viability.
• Changes in working capital and liquidity position to identify cash flow improvement or deterioration.
• Any capital injections or shareholder loans that might strengthen financial resources.
• Compliance with filing deadlines and disclosures to ensure transparency and governance.
• Management’s strategic plans to scale operations and improve margins.