F.A.B. PROPERTY SOLUTIONS LTD

Executive Summary

F.A.B. PROPERTY SOLUTIONS LTD is a small, relatively stable real estate management company with modest net asset value but concerns around negative working capital and liquidity. Credit approval is conditional, requiring close monitoring of cash flow and working capital to ensure the company can meet its short-term financial obligations. Directors’ industry experience provides some assurance, but additional financial support or collateral may be needed to mitigate risk.

F.A.B. PROPERTY SOLUTIONS LTD - Analysis Report

Company Number: 13508199

Analysis Date: 2025-07-20 17:38 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   F.A.B. PROPERTY SOLUTIONS LTD is an active micro-entity operating in real estate management and trading since 2021. The company shows a stable but modest net asset base (£46.6k in 2024) and consistent fixed assets (£129k). However, current liabilities exceed current assets by approximately £83k, indicating a working capital deficit, which raises liquidity concerns. The company’s ability to meet short-term obligations depends on ongoing cash flow from operations or external financing. Directors have significant control and are property developers by occupation, suggesting relevant industry experience. Credit approval is conditional on monitoring liquidity improvement or obtaining additional collateral/security.

2. Financial Strength:
   The balance sheet reveals a modest-sized business with total net assets around £46.6k, stable compared to prior years. Fixed assets remain constant, suggesting no recent capital expansion or disposals. However, current liabilities (~£153k) exceed current assets (~£70k), resulting in a negative net working capital position of roughly £83k, which is a concern for short-term solvency. Long-term liabilities of about £91.8k further pressure overall gearing. Shareholders’ funds appear stable but modest, limiting the cushion for absorbing losses or financial shocks.

3. Cash Flow Assessment:
   The company’s liquidity position is weak, evidenced by negative net current assets. The small current asset base relative to current liabilities suggests limited cash or receivables to cover immediate debts. The presence of accrued liabilities and deferred income is minimal and unlikely to affect liquidity materially. With only two employees and micro-entity status, operating expenses may be controlled, but the ability to generate positive operating cash flow should be verified. The company must secure regular cash inflows from property management or sales to service liabilities and avoid liquidity strain.

4. Monitoring Points:

• Working capital trends: Monitor changes in current assets and liabilities quarterly to assess liquidity improvements or deterioration.
• Cash flow from operations: Confirm consistent positive cash inflows from property activities to cover short-term debt.
• Debt servicing ability: Track interest and principal repayments on long-term liabilities and adherence to payment schedules.
• Director and shareholder actions: Review any capital injections or guarantees that might bolster financial strength.
• Market conditions: Monitor property market fluctuations impacting revenue streams and asset values.