5 STAR FACILITY MANAGEMENT LIMITED
Company number 05838122 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: 5 Star Facility Management Limited
1. Credit Opinion: DECLINE
Recommendation: DECLINE – No credit facilities should be extended.
The company is currently in Liquidation status. This is an absolute bar to lending. The entity is being formally wound up and has ceased to operate as a going concern. Any new credit exposure would be irrecoverable.
Even setting aside the liquidation, the financial profile presents severe credit concerns: - Insolvent balance sheet with net liabilities of £48,753 as at March 2024 - Deteriorating trajectory from net assets of £56,978 (2022) to net liabilities of £48,753 (2024) - Overdue statutory filings for both accounts and confirmation statement, indicating administrative breakdown - Minimal share capital of £1,000 providing negligible loss-absorption capacity
2. Financial Strength: Critical Weakness
The balance sheet reveals a company that has been technically insolvent for the majority of its 18-year history:
| Year | Net Assets/(Liabilities) | Trend |
|---|---|---|
| 2015 | (£15,388) | Negative |
| 2016 | (£22,727) | Worsening |
| 2017 | £22,362 | Recovery |
| 2018 | £22,126 | Stable |
| 2019 | £14,648 | Declining |
| 2020 | £11,648 | Declining |
| 2021 | £61,808 | Improvement |
| 2022 | £56,978 | Slight decline |
| 2023 | (£25,766) | Severe deterioration |
| 2024 | (£48,753) | Further deterioration |
Key balance sheet concerns (2024): - Fixed assets of only £2,465 – negligible asset base for security - Current assets of £103,505 against current liabilities of £113,192 - Net current liabilities of £9,687 – the company cannot cover short-term obligations - Long-term creditors of £40,131 further eroding any residual value - Shareholders' funds deeply negative at (£48,753)
The company has traded with negative net assets in 5 of the last 10 years, suggesting structural rather than cyclical insolvency.
3. Cash Flow Assessment: Failed
Liquidity Position: Critically Impaired
- Current ratio: 0.91x (Current assets £103,505 ÷ Current liabilities £113,192)
- The company cannot meet its short-term debts from current assets
- No cash position disclosed for 2024 (last reported cash was £14,514 in 2016)
- Working capital deficit of £9,687
The dramatic collapse in current assets from £572,075 (2023) to £103,505 (2024) – an 82% decline – suggests either: - Write-downs of debtor balances (potential bad debts) - Realisation of assets to pay creditors - Possible asset stripping preceding liquidation
Employee headcount reduced from 10 to 9, consistent with winding-down operations.
4. Monitoring Points
This account requires no ongoing monitoring as the company is in liquidation. However, for record purposes:
| Metric | Status | Action |
|---|---|---|
| Company status | Liquidation | No further exposure |
| Accounts filing | Overdue | Filing compliance failed |
| Confirmation statement | Overdue | Filing compliance failed |
| Net assets | (£48,753) | Insolvent |
| Director conduct | No disqualification records found | N/A |
For the directors involved (Ivan Robert Monk, Kyle Nathan Fraser Monk): Any future credit applications involving these individuals in new ventures should be subject to enhanced scrutiny given this liquidation history. The pattern of trading while insolvent and the significant deterioration in the final year warrant careful examination of any new entity they may control.