Company Number: 14175206

Analysis Date: 2025-07-19 12:25 UTC

1. Risk Rating: MEDIUM
   Fantalab Ltd shows positive net current assets and growing shareholder funds, indicating some financial stability. However, there is a significant increase in current liabilities within the latest year, mainly from director loans and tax liabilities, which elevates short-term repayment risk. The company is relatively young, with limited operating history, and the scale of liabilities relative to assets suggests moderate solvency risk.

2. Key Concerns:

• Sharp rise in current liabilities from £7,997 (2023) to £96,282 (2024), primarily due to increased director loans (£44,926) and taxes/social security (£42,984), which may pressure liquidity.
• Heavy reliance on director loans as a source of funding could pose risk if not formalized or repayable on demand.
• Limited operating history since incorporation in 2022 restricts assessment of sustainable cash flow generation and business operational resilience.

3. Positive Indicators:

• Net current assets remain positive (£9,643 in 2024), indicating working capital is sufficient to cover short-term liabilities despite the increase.
• Cash holdings increased substantially from £14,617 to £105,229, suggesting strong cash inflows or funding in the latest year.
• Timely filing of accounts and confirmation statements indicates good regulatory compliance and governance practices.
• Small company exemption and limited number of employees (2) imply a lean operational structure, potentially aiding cost control.

4. Due Diligence Notes:

• Clarify the nature and terms of the director loans: repayment schedule, interest, and security to assess associated risks.
• Review tax liabilities to confirm whether these are routine accruals or if any overdue or disputed amounts exist.
• Obtain management accounts or cash flow forecasts to verify ongoing liquidity and ability to service liabilities.
• Assess revenue trends and profit margins beyond balance sheet data to evaluate operational sustainability.
• Confirm absence of any director disqualifications or legal proceedings that could impact governance.