Company Number: 14174217

Analysis Date: 2025-07-20 15:11 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Shoorah Ltd is an active private limited company operating in the health and IT services sectors. The company is relatively new (incorporated mid-2022) and has filed timely accounts and confirmation statements, which is positive from a compliance perspective. However, the company’s net liabilities position (£21,850 negative net assets) and accumulated losses indicate it is currently not profitable. The large long-term creditor balance (£155,117) suggests reliance on external funding or shareholder loans. The declining net liabilities from the prior year (£59,840 negative) indicate some improvement. The company’s ability to meet short-term obligations appears adequate given positive net current assets, but the overall financial position is stretched. Credit approval should be conditional on monitoring cash flow closely and obtaining further information on the nature and terms of long-term creditors.

2. Financial Strength:

• Net assets show improvement but remain negative at £(21,850) as at June 2024, indicating shareholders’ funds have not yet turned positive.
• Fixed assets increased from £74,837 to £116,494, primarily intangible assets (development costs), signalling investment in product or service development.
• Current assets have decreased markedly (£50,722 to £20,658), mostly due to a significant reduction in cash balances (£50,672 to £18,422), which could pressure liquidity.
• Current liabilities have decreased substantially from £176,273 to £155,117 long-term creditors, and short-term creditors have decreased from £9,126 to £3,885, improving short-term solvency metrics.
• The shareholders' funds reflect accumulated losses (£184,846 retained earnings deficit), offset partially by a share premium account of £162,892.

3. Cash Flow Assessment:

• Cash at bank has reduced significantly during the year, which may indicate operating cash burn or investment activities without sufficient inflow.
• Positive net current assets (£16,773) indicate short-term liquidity to cover immediate liabilities, but the low cash buffer relative to long-term obligations requires attention.
• Debtors are low (£2,236), suggesting limited receivables risk but also limited sales volume.
• The company has minimal trade creditors, reducing short-term payment pressure.
• Working capital remains positive but has decreased substantially from the previous year. The company needs to demonstrate sustainable operating cash inflows going forward.

4. Monitoring Points:

• Watch cash flow trends closely, particularly cash burn rate and ability to generate operational cash.
• Review terms and repayment schedules of long-term creditors to assess refinancing or repayment risk.
• Track progress on reducing accumulated losses and moving towards profitability.
• Monitor management’s execution on investment in intangible assets to verify anticipated returns.
• Keep an eye on any changes in directors or PSCs that could impact governance and strategy.
• Confirm ongoing compliance with filing deadlines and regulatory requirements.