Company Number: 13093295

Analysis Date: 2025-07-20 16:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL. RAZZAK LIMITED is a micro-entity operating in the take-away food sector with a very modest asset base and limited financial disclosures. The company shows a net asset position of £3,517 as of 31/12/2023, which is positive but very small. The net current liabilities of £5,783 indicate working capital deficiency, which raises concerns about short-term liquidity and the ability to meet immediate obligations without external support or additional capital. The director is also the sole significant controller, which centralizes management but could be a risk if there is limited governance. Overall, credit can be extended but with conditions such as limits on exposure, monitoring of cash flow, and possibly personal guarantees or collateral given the weak liquidity.

2. Financial Strength: The balance sheet reflects minimal fixed assets (£9,300) and very low current assets (£860), offset by current liabilities of £6,643. This results in a net current liability position of (£5,783), indicating a working capital deficit. Total net assets stand at £3,517, which is low but positive, reflecting some retained capital or equity infusion. The company’s financial size and capital base are very modest, consistent with a micro-business classification. No profitability or turnover data are available, limiting insight into operational performance.

3. Cash Flow Assessment: Cash on hand is negligible (£1 reported in prior years), and current assets are insufficient to cover short-term liabilities, indicating potential liquidity pressure. The negative net current assets position suggests reliance on external funding or timely collection of receivables to meet payables. The absence of detailed profit and loss information and cash flow statements limits a comprehensive cash flow evaluation. However, the working capital deficit flags a concern regarding the company’s ability to service debts as they fall due without additional funding or improved operational cash generation.

4. Monitoring Points:

• Working capital trends and ability to reduce current liabilities or increase current assets.
• Timely filing of future accounts and confirmation statements to maintain compliance.
• Any change in management or PSC that could impact governance.
• Evidence of improving profitability or cash generation in subsequent periods.
• External financing arrangements or personal guarantees supporting liquidity.
• Any overdue payments or credit incidents reported by suppliers or credit agencies.