Company Number: 13792518

Analysis Date: 2025-07-20 16:47 UTC

1. Risk Rating: HIGH
   The company exhibits significant financial distress as evidenced by negative net assets and shareholders' funds, coupled with minimal cash resources and substantial current liabilities.

2. Key Concerns:

• Negative Net Assets and Shareholders' Funds: The company’s net assets and shareholders' funds declined from £1,090 positive in 2022 to approximately -£2,998 in 2023, indicating losses eroding equity and potential solvency issues.
• Liquidity Constraints: Cash at bank dropped from £101 to £52, while current liabilities surged from £989 (reported as negative, possibly a reporting anomaly) in 2022 to £3,050 in 2023, resulting in a net current liability position of -£2,998. This suggests difficulty in meeting short-term obligations.
• Operating Losses and Working Capital Deficit: The accounts reflect a substantial working capital deficit and accumulated losses, raising concerns about ongoing operational viability without additional capital or improved cash flows.

3. Positive Indicators:

• Timely Filings and Compliance: The company has filed accounts and confirmation statements on time with no overdue filings, reflecting good governance and regulatory compliance.
• Small Company Reporting Exemptions: The company qualifies for small company exemptions, which may reduce administrative burdens.
• Stable Management: The sole director and majority shareholder (Mr. Ali Nawaz) remains consistent since incorporation, providing continuity in leadership.

4. Due Diligence Notes:

• Clarify the Nature of Current Liabilities and Creditor Composition: The significant increase in current liabilities and the unusual negative figure in 2022 warrants review of creditor aging and payment terms.
• Examine Underlying Cause of Losses: Investigate operational or market factors driving the sharp decline in net assets and profits to assess sustainability.
• Assess Cash Flow Forecasts and Capital Plans: Determine if the company has access to additional funding or plans to improve liquidity and restore positive net assets.
• Review Director’s Statements and Any Related Party Transactions: To ensure no conflicts or unusual transactions affecting financial health.
• Confirm Accuracy of Reported Figures: The inconsistency in current liabilities reporting between years requires validation.