Company Number: 13646114

Analysis Date: 2025-07-29 13:34 UTC

1. Credit Opinion: DECLINE
   Fabco 2 Ltd exhibits significant financial distress with large and increasing net current liabilities (£-16,258 in 2023 from £-10,331 in 2022). The company is heavily reliant on intra-group funding (over £5,000 owed to group undertakings), which may not be sustainable or available under adverse conditions. Cash reserves are minimal (£582), and working capital is negative, indicating limited liquidity to cover short-term obligations. Given these factors and no employees generating operational cash flow, there is a high risk of default on credit facilities.

2. Financial Strength:
   The balance sheet shows persistent negative shareholder funds, deteriorating from £-4,013 in 2020 to £-16,358 in 2023. Total assets less current liabilities remain negative with no indication of fixed assets to secure lending. The increase in trade creditors from £5,933 to £11,213 year-on-year implies growing payment pressure. The company operates in real estate trading, which can be asset-heavy, yet no fixed assets are reported, suggesting limited tangible collateral.

3. Cash Flow Assessment:
   Cash at bank is very low and declining (from £976 to £582), with current liabilities vastly exceeding current assets. Debtors have decreased slightly but remain insignificant in covering liabilities. The negative working capital position and lack of operational employees raise concerns about the company’s ability to generate or sustain positive cash flows. Reliance on group loans further highlights liquidity risk.

4. Monitoring Points:

• Track changes in intra-group borrowings and any signs of repayment or additional support.
• Monitor trade creditors and payment delays as indicators of worsening liquidity.
• Watch for any improvements in cash balances or receipt of fixed assets to bolster the balance sheet.
• Review future filed accounts for signs of operational activity or changes in business strategy to improve financial health.