FAMOUS ACRE BRANDS LTD

Executive Summary

Famous Acre Brands Ltd is financially distressed with persistent negative equity and worsening liquidity, raising serious concerns about its ability to meet debt obligations. The micro-sized company’s balance sheet weaknesses and cash flow insufficiencies warrant a credit decline without substantial financial turnaround evidence. Close monitoring of future financial filings and business developments is essential if credit exposure is reconsidered.

FAMOUS ACRE BRANDS LTD - Analysis Report

Company Number: 12614641

Analysis Date: 2025-07-29 20:51 UTC

1. Credit Opinion:
   DECLINE. Famous Acre Brands Ltd exhibits significant financial distress marked by persistent and deepening negative shareholders’ funds (net liabilities of £47,426 as of 2024) and worsening net current liabilities (£47,426 negative working capital). The company’s balance sheet weakness, small asset base, and lack of positive equity suggest an inability to support additional debt or meet ongoing obligations comfortably. Without evidence of profitability or cash flow improvement, extending credit poses high risk.

2. Financial Strength:
   The company is classified as a micro entity with very limited asset size and one employee (the director). It has consistently reported negative shareholders’ funds since inception in 2020, with a worsening trend from -£3,260 initially to -£47,426 in 2024. Current liabilities have grown sharply (from £7,696 in 2020 to £50,114 in 2024) while current assets have declined from £4,436 to £2,688, indicating deteriorating liquidity. No long-term liabilities remain as of 2024. Overall, the balance sheet is weak, showing a lack of financial cushion.

3. Cash Flow Assessment:
   Working capital is deeply negative and deteriorating, indicating cash flow stress. The company’s current assets (mainly cash and receivables) are insufficient to cover short-term obligations. The absence of profit and loss data limits detailed cash flow analysis, but the negative equity and increasing current liabilities imply ongoing losses or inability to generate sufficient cash internally. The company is unlikely to have meaningful cash reserves to service new debt or finance operations without external support.

4. Monitoring Points:

• Track changes in net current assets and shareholders’ funds for any signs of improvement.
• Monitor the filing of full accounts including profit and loss to assess operating performance and cash generation.
• Observe director and shareholder activity for capital injections or restructuring efforts.
• Watch payment patterns and creditor relationships to detect liquidity stress or defaults.
• Review any changes in business model or product lines given multiple SIC codes indicating diverse activities.