Company Number: 13133293

Analysis Date: 2025-07-20 14:39 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   THE BUKHARI TRUST shows recent improvement in financial position, moving from net liabilities to a modest net asset position in the latest year. However, as a micro entity with limited fixed assets and very tight net current assets (£40), the company's ability to meet unexpected financial stress is limited. The company’s short operating history (since 2021) and thin working capital margin warrant cautious credit exposure, ideally with conditions such as monitoring liquidity and timely filing compliance. The absence of audit increases uncertainty but is typical for micro entities.

2. Financial Strength:
   The balance sheet as of 31 January 2024 records total net assets of £1,865, up from a negative net asset position in prior years. Fixed assets are immaterial (£1,825), indicating limited capital investment. Current assets (£197,522) closely match current liabilities (£197,482), resulting in a very slim net working capital buffer (£40). The sharp increase in current assets and liabilities compared to prior years suggests recent growth in operational scale but also heightened short-term obligations that must be managed carefully. Shareholders’ funds reflect the net asset position, consistent with a company limited by guarantee.

3. Cash Flow Assessment:
   The near break-even net current assets indicate very tight liquidity, with current liabilities nearly equal to current assets. This minimal working capital cushion means the company could face short-term liquidity risk if cash inflows are delayed or unexpected expenses arise. The increase in current assets likely includes receivables or cash, but without detailed cash flow statements, it is unclear if cash generation is stable. Given the company’s small size and social work/education focus, cash flow predictability may depend on grant funding or donations, which can be variable.

4. Monitoring Points:

• Liquidity trends: Monitor monthly cash flow to ensure current liabilities remain covered by liquid assets.
• Timely filing: Maintain compliance with annual accounts and confirmation statements deadlines to avoid penalties and credit rating impact.
• Profitability and reserves: Watch for sustained profitability to build a stronger equity base and improve resilience.
• Dependency on funding sources: Assess stability of income streams, especially external funding or grants, to mitigate liquidity risk.
• Governance: Given multiple directors with significant control, ensure financial stewardship and controls are robust.