Company Number: SC719259

Analysis Date: 2025-07-20 11:25 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   UJAMAA SPICE LTD is a micro-entity with a short trading history since incorporation in 2022. The company has recently moved from net liabilities to a modest net asset position (£779) as of 31 January 2024, showing signs of improving financial health. However, the working capital remains negative (£-1,741), indicating current liabilities exceed current assets. The business operates in the retail/wholesale spice market, which can be competitive but also niche and potentially resilient if managed well. The director ownership is concentrated, with Miss Jawahir Al-Mauly holding controlling interest and actively involved in management, which may support sound stewardship. Given the early stage and marginal working capital, credit approval should be conditional on close monitoring of liquidity and turnover development.

2. Financial Strength:
   The balance sheet shows fixed assets of £2,520, stable over the last three years, reflecting minimal capital investment likely consistent with a start-up. The company’s net assets improved from a negative £3,742 in prior years to a positive £779 in 2024, indicating a turnaround or capital injection. However, current liabilities remain higher than current assets, causing a net current liability position. Share capital is minimal (£2), so equity growth appears to come from retained earnings or capital adjustments. Overall, the financial strength is weak but improving, with limited buffers against financial stress.

3. Cash Flow Assessment:
   Negative net current assets indicate working capital pressure, suggesting that the company may struggle to meet short-term obligations without additional funding or improved cash collection. The increase in current assets from £6,098 to £8,558 is positive, but current liabilities remain high at £10,299. No employees are recorded, indicating a possibly lean operation, which may reduce overheads but also potentially limits operational scalability. Cash flow from operations is not disclosed, so the bank should require updated management accounts or cash flow forecasts to assess liquidity adequacy prior to extending credit.

4. Monitoring Points:

• Working capital trends and liquidity position, especially current assets versus current liabilities
• Profitability and turnover growth in the retail/wholesale spices market
• Director involvement and any changes in shareholding or management structure
• Timely filing of accounts and confirmation statements to ensure compliance and transparency
• Any changes in customer concentration or supplier payment terms that could impact cash flow