UNIQUE EXPRESS LTD

Executive Summary

UNIQUE EXPRESS LTD demonstrates improving equity and asset growth over recent years, indicating solvency and operational progress. However, liquidity is constrained by minimal cash reserves and rising short-term liabilities, necessitating further review of debtor quality and financing arrangements. Governance concentration and recent financial obligations warrant close monitoring to ensure ongoing stability.

UNIQUE EXPRESS LTD - Analysis Report

Company Number: 12865527

Analysis Date: 2025-07-29 20:25 UTC

1. Risk Rating: MEDIUM
   The company shows positive net assets and increasing equity over recent years, suggesting ongoing solvency. However, the sharp increase in current liabilities, particularly bank loans and corporation tax, coupled with minimal cash reserves, raises liquidity concerns that moderate the risk rating.

2. Key Concerns:

• Liquidity risk is evident due to a cash balance of only £100 against current liabilities of £4,887 as of 30 September 2024, indicating potential challenges in meeting short-term obligations without converting debtors quickly to cash.
• Significant increase in corporation tax payable from £519 (2023) to £2,293 (2024) and bank loans newly introduced at £1,915 could pressure cash flows and may reflect tax or financing issues requiring scrutiny.
• Reliance on a single director/owner (Mr. Selim Ahmed Khan) who holds 75-100% control may present governance risks and concentration of decision-making without independent oversight.

3. Positive Indicators:

• The company has steadily improved its net assets from £100 in 2020 to £5,438 in 2024, reflecting retained earnings growth and asset accumulation.
• Net current assets remain positive at £3,857, supported by a substantial increase in trade debtors from £2,143 to £8,644, indicating potentially strong sales or receivables growth.
• No overdue filings and compliance with statutory requirements suggest good regulatory compliance and operational discipline.

4. Due Diligence Notes:

• Investigate the quality and collectability of the trade debtors, especially given the low cash balance, to assess actual liquidity and cash conversion risk.
• Review terms and purpose of the bank loans and accrued corporation tax to understand financing strategy and potential tax liabilities or disputes.
• Assess the director’s loan account movements and examine any related party transactions for potential conflicts of interest or financial support mechanisms.
• Evaluate the sustainability of the business model in the retail clothing sector given the company’s size, market conditions, and the director’s operational capacity as the sole employee.