NORTH WESTMINSTER MUSLIM CULTURAL ASSOCIATION LTD

Executive Summary

North Westminster Muslim Cultural Association Ltd is a newly formed cultural association with strong cash reserves but limited equity and significant long-term liabilities that require clarification. While the company currently demonstrates adequate short-term liquidity and no overdue filings, credit approval should be conditional pending verification of the nature of long-term creditors and assurance of sustainable cash inflows. Ongoing monitoring of donations and liabilities will be crucial to mitigate credit risk.

NORTH WESTMINSTER MUSLIM CULTURAL ASSOCIATION LTD - Analysis Report

Company Number: 15199570

Analysis Date: 2025-07-29 21:01 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   North Westminster Muslim Cultural Association Ltd is a newly incorporated private company limited by guarantee with no share capital. It shows a modest net asset base of £6,546 and strong cash holdings of £497,724. However, it also carries significant long-term liabilities of £490,948. The company’s ability to repay these obligations depends heavily on ongoing cash flow and management of liabilities. Given the limited financial history (less than two years) and the nature of its activities as a religious organization (SIC 94910), which may have irregular revenue streams primarily from donations, credit approval should be conditional on monitoring future cash flow stability and liability management.

2. Financial Strength
   The balance sheet reflects a strong liquidity position with cash assets nearly equal to current liabilities, and net current assets of £497,494 indicating good short-term financial health. The large sum of creditors due after one year (£490,948) likely represents deferred income or grant-related liabilities typical for cultural associations, rather than conventional debt, but this needs verification. The net asset position is positive but marginal at £6,546, reflecting limited accumulated reserves since incorporation. Overall, the financial strength is adequate for a start-up entity but leans on managing its long-term obligations prudently.

3. Cash Flow Assessment
   Cash at bank of £497,724 provides a solid liquidity buffer, sufficient to cover short-term liabilities comfortably. The company has only one employee, limiting payroll commitments, and reports no audit requirement, indicating a small-scale operation. However, the absence of a profit and loss account and the small equity base require caution regarding ongoing cash inflows. The company’s cash flow adequacy for servicing long-term creditors or potential loan repayments will depend on continued donation inflows or grant funding, which should be carefully reviewed before extending credit.

4. Monitoring Points

• Track incoming donations, grants, or other revenue streams regularly to ensure sufficient cash flow.
• Monitor the status and nature of the £490,948 long-term creditors to confirm whether these are repayable liabilities or deferred income.
• Review the company’s financials annually for growth in reserves and net assets.
• Observe director changes and governance given the concentration of control under a single PSC holding 75-100% control as a trust.
• Confirm compliance with filing deadlines and accounting standards to avoid regulatory risks.