Company Number: 14590179

Analysis Date: 2025-07-19 12:20 UTC

1. Credit Opinion: DECLINE
   Orisha Ltd is a newly incorporated private limited company active in wholesale perfume and cosmetics. The financials show a net liability position of £976 with negative working capital (net current assets of -£976). Current liabilities exceed cash and current assets, indicating an immediate liquidity shortfall. The company is fully owned and controlled by a single director, Dr. James Johnson-Ogbuneke, who has loaned £1,695 to the business. The absence of turnover or profit data and the negative equity suggest the company is in its start-up phase without established trading performance or profitability. Given the limited financial history, negative net assets, and reliance on director loans, the company lacks sufficient financial strength and track record to support new credit without substantial guarantees or collateral. Credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals limited fixed assets (not disclosed but implied nil or minimal), minimal cash (£1,061), and current liabilities of £2,037, including director loans and accruals. Shareholders’ funds are negative (£-976), reflecting accumulated losses or startup costs exceeding capital contributions. The company has no retained earnings or reserves to absorb shocks. The negative equity and working capital indicate weak financial stability and potential solvency concerns if operating losses continue.

3. Cash Flow Assessment:
   The company’s cash position is very low, with cash on hand not sufficient to cover short-term liabilities. Net current liabilities show a working capital deficit, implying the company cannot meet its short-term obligations from available liquid assets. Director loans provide temporary funding but are not a sustainable source of liquidity. No evidence of operating cash inflows or sales revenues is presented, raising concerns about ongoing cash generation capability.

4. Monitoring Points:

• Quarterly review of cash flow and liquidity to detect any worsening deficits.
• Turnover and gross margin development to assess operational viability.
• Changes in director loan balances and any new external financing arrangements.
• Timely filing of next accounts and confirmation statements to ensure compliance and transparency.
• Any material changes in ownership or new directors that may affect governance and control.