Company Number: 14374966

Analysis Date: 2025-07-20 18:06 UTC

1. Credit Opinion: DECLINE
   SEDEQI LIMITED is an early-stage construction business with minimal operating history (incorporated Sept 2022). The latest accounts show net liabilities of £15,733 and significant long-term liabilities (£25,159). Despite positive net current assets (£9,426) and cash of £10,804, the overall negative shareholders’ funds indicate weak equity and potential solvency concerns. The company is a one-person operation with no audit and limited financial transparency. The negative net assets and reliance on external creditors raise concerns about its ability to service debt reliably. Without further financial information or guarantees, extending credit carries high risk.

2. Financial Strength:
   The balance sheet reveals a fragile financial position. While current assets exceed current liabilities, providing positive working capital, the company’s long-term liabilities surpass total assets, resulting in negative net assets and shareholders’ funds. The share capital is nominal (£1), and accumulated losses are £15,734. This indicates the company is currently undercapitalized and likely reliant on external funding or director support for ongoing operations.

3. Cash Flow Assessment:
   Cash at bank (£10,804) provides some liquidity buffer, but the company’s overall cash flow situation is uncertain due to limited data on income and expenses (no income statement filed). The net current asset position suggests short-term obligations can be met, yet the sizeable long-term liabilities pose a future cash flow strain. The business’s working capital is positive but modest, which may impede growth or ability to absorb financial shocks.

4. Monitoring Points:

• Monitor quarterly cash flow and bank balances for any signs of liquidity stress.
• Track reduction or increase in long-term liabilities to assess debt management.
• Watch for subsequent annual accounts to evaluate profitability and equity trends.
• Review director or related party transactions given sole control by Mr. Sedighdi.
• Assess timely filing of statutory returns to avoid compliance risks.