FAITH'S SOLUTION LIMITED

Executive Summary

Faith's Solution Limited is a newly established micro-entity with consistent negative working capital and minimal net assets, suggesting elevated solvency and liquidity risks. While regulatory compliance is maintained, the company's operational scale and financial buffers appear insufficient to ensure stability without further capital support or operational development. Further investigation into business viability and cash flow is recommended.

FAITH'S SOLUTION LIMITED - Analysis Report

Company Number: 13929629

Analysis Date: 2025-07-20 12:48 UTC

1. Risk Rating: HIGH
   The company shows persistent net current liabilities and minimal net assets over its two years of operation, indicating weak solvency and liquidity positions. Its financial scale is very small, typical of a micro-entity but with negative working capital, which raises concerns about meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company has net current liabilities of £846 in 2024 and £1,034 in 2023, indicating potential liquidity constraints and difficulty covering short-term debts.
• Minimal Net Assets & Equity: Net assets and shareholders’ funds are nominal (£86 in 2024, £14 in 2023), reflecting limited financial buffer or retained earnings to absorb losses or operational shocks.
• No Employees and Limited Operational Footprint: The company reports zero employees and very low asset and current asset values, suggesting limited operational activity and potential viability issues.

3. Positive Indicators:

• Compliance with Filings: Accounts and confirmation statements are filed on time with no overdue returns or accounts, indicating good regulatory compliance.
• Sole Director with Significant Control: Ownership and control are clear and consolidated under a single director, which may simplify governance and decision-making.
• Exemption from Audit: As a micro-entity, the company benefits from simplified reporting requirements, reducing administrative burden.

4. Due Diligence Notes:

• Investigate the company’s business model and revenue generation to assess operational sustainability given the micro scale and lack of employees.
• Clarify the nature and timing of current liabilities to understand if these are trade payables, loans, or other obligations.
• Assess cash flow statements or bank records if available, to evaluate actual liquidity beyond balance sheet snapshots.
• Understand the director’s plans for financial strengthening or capital injection, given the thin equity base.
• Verify any related party transactions or intercompany dealings that might affect financial position.