F3 CONSULTING LTD

Executive Summary

F3 Consulting Ltd is a small, micro-entity with positive net assets and working capital but showing a decline in equity and a significant increase in current liabilities in the latest year. The company's limited financial history and tight liquidity profile suggest suitability for modest credit lines with regular monitoring. Overall, credit approval is recommended with caution focusing on liquidity and ongoing financial performance.

F3 CONSULTING LTD - Analysis Report

Company Number: 14061740

Analysis Date: 2025-07-20 19:14 UTC

1. Credit Opinion: APPROVE with reservations F3 Consulting Ltd is a recently incorporated micro private limited company with a single director and shareholder controlling 75-100% of shares. The company shows positive net assets and working capital but has experienced a decline in net assets (£9,447 to £7,897) and net current assets (£7,515 to £5,412) over the last year. While the firm has no overdue filings and appears compliant, the low asset base and increasing current liabilities (from £8,435 to £30,274) suggest a tighter liquidity position. The company’s ability to service debt appears adequate for small-scale credit facilities but warrants monitoring due to limited financial history and small size.

2. Financial Strength:

• Fixed assets are minimal and stable (~£2,500).
• Current assets increased from £15,950 to £35,686, but current liabilities rose disproportionately from £8,435 to £30,274.
• Net current assets remain positive at £5,412, indicating positive working capital but the sharp increase in current liabilities raises concerns.
• Net assets decreased by approximately 16%, from £9,447 to £7,897, reflecting either operating losses or distributions.
• No long-term liabilities as of the latest year-end.

3. Cash Flow Assessment:

• The company holds current assets primarily in cash or receivables sufficient to cover current liabilities with a modest buffer.
• The increase in current liabilities could indicate increased short-term borrowing or trade payables, which requires further inquiry.
• Working capital remains positive, which supports short-term liquidity and operational needs.
• Limited employee count (1) and micro entity status suggest low overheads, reducing cash burn risk.
• No audit required due to micro entity status, so underlying cash flow details are limited.

4. Monitoring Points:

• Monitor the trend in current liabilities to ensure they do not outpace current assets, which could strain liquidity.
• Track profitability and retained earnings through P&L reserves to assess if net asset erosion continues.
• Watch for any changes in director or shareholder structure that could impact management stability.
• Confirm timely filing of future accounts and confirmation statements to maintain compliance.
• Assess any increase in debt facilities or reliance on trade credit that could impact repayment ability.