Company Number: 14579329

Analysis Date: 2025-07-20 18:16 UTC

1. Credit Opinion: DECLINE
   FACES LONDON LTD shows significant financial weakness with negative shareholders’ funds of £52,205 as at 31 January 2024, indicating insolvency on a balance sheet basis. Current liabilities plus long-term creditors and accruals total approximately £65,858 against current assets of only £13,653, resulting in a large working capital deficit. The company is newly incorporated and has no audit or external verification of accounts. Given the micro-entity scale and negative net equity, there is a high risk of inability to meet debt obligations without substantial capital injection or improved trading performance. Credit approval is not advisable at this stage.

2. Financial Strength:
   The balance sheet evidences poor financial strength. Shareholders’ funds are negative, meaning liabilities exceed assets by over £52k. Current liabilities (including short-term creditors and accruals) exceed current assets by nearly £50k, indicating negative net current assets and poor liquidity. Long-term liabilities of £61,492 further strain financial stability. The company’s micro category and single employee suggest a small operational base with limited financial buffers. No fixed assets are reported, increasing reliance on working capital management and external funding.

3. Cash Flow Assessment:
   Current assets of £13,653 are insufficient to cover short-term creditors of £1,866 and deferred income/other accruals of £2,500, let alone the long-term creditor balance of £61,492. This signals tight liquidity and potential cash flow difficulties. The negative working capital suggests operating cash flow is currently inadequate to meet obligations as they fall due. Without detailed cash flow statements, the visibility of cash generation is limited, but the negative equity and large creditor balances imply a risk of payment delays or defaults.

4. Monitoring Points:

• Progression of trading performance and profitability to rebuild reserves and improve equity position
• Management of creditor terms and working capital to reduce liquidity pressure
• Any capital injections or shareholder loans to support solvency
• Timely filing of next accounts and confirmation statements to ensure ongoing compliance
• Director’s operational and financial management given sole control and responsibility