F M SOLUTIONS AND SYSTEMS LIMITED

Executive Summary

F M Solutions And Systems Limited exhibits ongoing financial weakness with negative net assets and working capital deficits, raising concerns about its ability to meet short-term obligations. Cash flow constraints and reliance on group loan funding further undermine creditworthiness. Without clear signs of operational improvement or capital support, credit exposure is not recommended.

F M SOLUTIONS AND SYSTEMS LIMITED - Analysis Report

Company Number: 14062827

Analysis Date: 2025-07-19 12:33 UTC

1. Credit Opinion: DECLINE
   F M Solutions And Systems Limited demonstrates weak financial health with persistent negative net assets and net current liabilities over the last two years. The company is operating with a significant working capital deficit (net current liabilities of £19,106 as of April 2024), indicating insufficient short-term liquidity to cover obligations. The absence of employees and limited tangible assets further suggest operational scale constraints. Without evidence of profitability or improved cash flows, the risk of default is elevated. Based on current financials and limited operational scale, credit approval is not recommended at this stage.

2. Financial Strength:
   The balance sheet reveals a negative shareholders' funds position worsening from -£15,799 in 2023 to -£18,424 in 2024, reflecting accumulated losses. Fixed assets are minimal (£782) and largely depreciated. Current assets (£42,137) are substantially offset by current liabilities (£61,243), resulting in negative working capital. The company relies heavily on amounts owed to group undertakings (£25,000), which may represent intercompany loans but also add to creditor pressure. Overall, the financial structure is fragile with inadequate equity buffer and liquidity.

3. Cash Flow Assessment:
   Cash balances have declined from £32,799 in 2023 to £17,752 in 2024, signaling a drawdown of liquid resources. Trade debtors increased significantly from £2,138 to £22,897, potentially indicating slower collections and cash conversion issues. The company’s current liabilities exceed current assets, highlighting a short-term funding gap. The absence of employees suggests limited operational cash outflows, but also limited revenue-generating capacity. The cash flow position indicates constrained liquidity, which could impair timely debt servicing.

4. Monitoring Points:

• Improvement or stabilization of net current assets and net assets to positive territory.
• Reduction of trade debtor days and improvement in cash collections.
• Monitoring loans from group undertakings for any restructuring or repayment plans.
• Evidence of revenue growth or profitability in future filings to support cash flow improvements.
• Review of director plans or capital injections to bolster financial position.