Company Number: 14809477

Analysis Date: 2025-07-29 20:42 UTC

1. Risk Rating: HIGH
   Justification: The company, NAZTEX ABAYAS LTD, exhibits a negative net asset position (£-667) at its first financial year-end, indicating insolvency on a balance sheet basis. It is a very new entity (incorporated April 2023) and operates as a micro-entity with minimal financial history. The negative working capital (current assets £2,850 vs current liabilities £3,517) suggests liquidity stress. No audit is performed, and the company relies on micro-entity filing exemptions, limiting transparency.

2. Key Concerns:

• Negative net assets and net current liabilities indicate potential solvency and liquidity risks.
• Limited operating history (only one financial year) and no profit & loss account filed restrict assessment of operational sustainability.
• Single director and majority owner concentration (75-100% control by Mr Nazir Ahmed) increases governance and control risk.

3. Positive Indicators:

• The company is compliant with filing deadlines for accounts and confirmation statements, suggesting regulatory adherence so far.
• The business operates in retail and wholesale textile sectors, which can be sustainable if properly managed.
• Low employee count (2 including director) implies limited overhead, potentially easing cash flow pressures.

4. Due Diligence Notes:

• Obtain updated management accounts and cash flow forecasts to assess current liquidity and going concern status.
• Investigate the reasons behind the negative net assets and whether there is any financial support from the director or related parties.
• Review business model viability, customer base, and supplier relationships given the micro-entity scale and early stage of operations.
• Confirm no undisclosed liabilities or contingent risks exist.
• Assess director’s background and track record in managing similar businesses.