SADEK R & CO LTD.

Executive Summary

Sadek R & Co Ltd is a very new micro-entity with negative net assets and a significant working capital deficit as of its first year-end. The company shows no trading history or cash resources to meet liabilities, indicating high credit risk. Without further financial improvement or security, credit facilities are not recommended at this stage.

SADEK R & CO LTD. - Analysis Report

Company Number: 14774445

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: DECLINE. Sadek R & Co Ltd is a newly incorporated micro private limited company with minimal operating history and no employees. It shows a net liability (negative net assets) position of £4,254 at its first year-end (April 2024) and negative working capital of £3,859. This suggests the company is currently undercapitalized and does not have sufficient resources to meet short-term obligations. The absence of profit and loss data or cash flow information further limits evidence of ability to service debt. Given the very limited financial track record, lack of liquidity, and negative equity, the credit risk is high. Approval for credit facilities would not be prudent without substantial additional information or security.

2. Financial Strength: The balance sheet reveals extremely weak financial strength. Current assets are negligible (£1), while current liabilities stand at £3,860, indicating a severe working capital deficit. Net liabilities of £4,254 mean the company's total liabilities exceed assets. The company has no fixed assets or other resources to offset liabilities. Shareholders’ funds are negative, reflecting accumulated losses or initial funding shortfall. The company’s micro-entity accounts and exemption from audit limit insight, but the negative net asset position signals financial fragility.

3. Cash Flow Assessment: Cash flow position appears strained. With current liabilities exceeding current assets by £3,859, the company likely faces immediate liquidity challenges. No employees or operational revenues are disclosed, implying limited or no trading activity to generate cash inflows. The micro classification and new incorporation date suggest operations are at a nascent stage with minimal cash reserves. Without positive cash flow or working capital, the company cannot reliably service short-term debts or finance ongoing operations.

4. Monitoring Points:

• Monitor subsequent filing of profit and loss accounts to assess trading performance.
• Track changes in current assets and liabilities to evaluate improvement in liquidity.
• Review directors’ reports or business plans for capital injection or revenue generation strategies.
• Watch for any changes in company status or director appointments that may impact governance.
• Assess timely submission of future accounts and confirmation statements to ensure regulatory compliance.