FAB OSC LTD

Executive Summary

Fab OSC LTD is a small, micro-entity operating in child day-care activities with a highly constrained financial position. The balance sheet shows negative working capital and minimal equity, raising concerns about liquidity and creditworthiness. Given these factors, credit approval is not recommended without substantial improvement in financial metrics.

FAB OSC LTD - Analysis Report

Company Number: SC668074

Analysis Date: 2025-07-20 18:37 UTC

1. Credit Opinion: DECLINE
   FAB OSC LTD shows weak financial strength with net current liabilities of £2,624 as of 31 July 2023 and minimal net assets (£1). The company is micro-sized with limited equity and a working capital deficit, which raises concerns about its ability to meet short-term obligations and service any new credit facilities. The trend from the prior year shows a deterioration in liquidity and net asset position. Despite being active and compliant with filings, the company lacks sufficient financial resilience and depth to support additional credit risk at this time.

2. Financial Strength:
   The balance sheet reveals very low fixed assets (£2,894) and rapidly declining current assets (£542 in 2023 from £3,348 in 2022). Current liabilities remain high (£3,166), resulting in a negative net working capital position. Shareholders' funds have shrunk to only £1, indicating almost no buffer to absorb losses or financial shocks. The company operates with minimal capital and equity, which is insufficient for sustainable growth or absorbing setbacks.

3. Cash Flow Assessment:
   The negative net current assets point to liquidity constraints. Current liabilities exceed current assets by a significant margin, suggesting potential difficulties in meeting short-term liabilities without additional funding or cash inflows. No profit and loss account was filed, so profitability and cash generation cannot be assessed directly, but the balance sheet trend signals cash flow pressures.

4. Monitoring Points:

• Watch for improvement or further deterioration in net current assets and net equity.
• Monitor timely filing of accounts and confirmation statements to ensure regulatory compliance.
• Track any new capital injection or changes in debt levels to assess credit risk shifts.
• Review any available financial performance indicators when P&L data is accessible.
• Keep an eye on director conduct and company status for any signs of distress or restructuring.