Company Number: 13951263

Analysis Date: 2025-07-29 16:03 UTC

Financial Health Assessment: NAZA LTD (as of 31 March 2025)

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1. Financial Health Score: D

Explanation:
The company shows some concerning signs of financial distress despite modest current asset levels. The negative net assets and shareholders’ funds indicate accumulated losses or liabilities exceeding assets, a symptom akin to a patient with a weakened immune system. While liquidity (cash and current assets) appears present, the financial structure is fragile.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	286	Low but positive short-term assets, indicating some available liquidity.
Current Liabilities	65	Low short-term obligations, manageable relative to current assets.
Net Current Assets (Working Capital)	221	Positive working capital, suggests short-term financial health.
Accruals and Deferred Income	601	Significant liabilities not yet due; these are like underlying chronic symptoms stressing the company.
Net Assets / Shareholders’ Funds	-380	Negative equity implies liabilities exceed assets, a critical warning sign of financial distress.
Cash (Previous Years)	100	Historically modest cash reserves, consistent with micro-entity operations.

Additional Notes:

• The company is categorized as a micro-entity, implying limited scale and minimal filing requirements.
• The business operates in retail sales via mail order or internet, an industry requiring efficient cash flow management.
• No overdue filings, indicating compliance with statutory obligations.
• Directors have changed recently but current director (Zaid Nouri) has full control, which can be a strength or risk depending on governance.

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3. Diagnosis

The financial "vital signs" reveal a company in fragile condition. The positive working capital is a healthy pulse indicating the company can cover short-term obligations. However, the negative net assets show a deeper, chronic problem—accumulated losses or deferred liabilities that outweigh total assets, similar to a patient with underlying chronic illness despite a currently stable heartbeat.

The large accruals and deferred income (601) exceeding current assets suggest the company has obligations or income received in advance that may strain future liquidity. The negative shareholders’ funds indicate the business is "underweight" in terms of net worth, limiting its ability to raise funds or withstand shocks.

The company’s financial health resembles a patient with stable but weak vital signs: liquidity is present but the balance sheet shows stress that could lead to insolvency if not addressed.

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4. Recommendations

• Strengthen Equity Base: Consider capital injection or debt restructuring to improve net asset position, akin to boosting the immune system to fight underlying disease.

• Manage Deferred Income & Accruals: Review these liabilities carefully to understand timing and nature. Early attention to these "hidden symptoms" can prevent future cash flow crises.

• Improve Profitability: Although profit and loss details are not filed, the negative net assets imply losses. Focus on increasing revenues and controlling costs, especially important in the competitive online retail sector.

• Cash Flow Monitoring: Maintain healthy cash flow through rigorous monitoring to avoid liquidity crises. Even with positive working capital, cash flow can be tight.

• Governance & Control: With a single controlling director, ensure appropriate oversight and consider advisory support to bring diverse perspectives and reduce risk.

• Plan for Growth or Exit: Evaluate strategic options carefully; whether scaling up with fresh investment or considering an orderly exit to avoid further financial deterioration.

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