FANYOU ENTERPRISE MANAGEMENT CONSULTING (UK) CO., LTD

Executive Summary

FANYOU ENTERPRISE MANAGEMENT CONSULTING (UK) CO., LTD shows a stable financial position with positive net assets and liquidity, supported by a parent company. While profitability remains a concern due to accumulated losses, the company’s current working capital and cash levels suggest it can service its short-term obligations. Conditional approval is recommended with ongoing financial performance monitoring.

FANYOU ENTERPRISE MANAGEMENT CONSULTING (UK) CO., LTD - Analysis Report

Company Number: 13760249

Analysis Date: 2025-07-29 20:49 UTC

1. Credit Opinion: APPROVE with conditions.
   FANYOU ENTERPRISE MANAGEMENT CONSULTING (UK) CO., LTD demonstrates a positive net asset position and adequate working capital relative to its current liabilities. The company is still relatively new (incorporated late 2021) but has shown modest growth in net current assets and net assets over the last two financial periods. However, the accumulated losses reflected in the profit and loss reserve signal the need for monitoring profitability improvements and cash flow stability. Approval is recommended on the condition of ongoing review of financial performance and timely reporting of any material changes.

2. Financial Strength:
   The balance sheet shows net assets of £12,581 as of 30 September 2024, up from £10,399 the previous year, indicating a strengthening equity base. Shareholders' funds stand at £35,010, supported by a parent company ownership structure, which enhances financial backing. Current liabilities are low (£3,233), and net current assets are positive (£12,581), indicating a solid short-term financial position. The company’s low fixed asset base is typical for consultancy firms, with most assets held as cash or equivalents.

3. Cash Flow Assessment:
   Cash on hand increased slightly to £15,814 from £12,632, supporting operational liquidity. Current liabilities remain minimal and manageable. The company maintains a positive net working capital position, suggesting sufficient liquidity to meet short-term obligations. However, the negative retained earnings (-£22,429) highlight that the company has yet to achieve sustained profitability, which could impact cash generation if not addressed. Close attention should be paid to cash flow forecasts and contract collections.

4. Monitoring Points:

• Profitability trends and reduction in accumulated losses.
• Cash flow stability, especially given the negative retained earnings.
• Any increase in current liabilities or changes in working capital ratios.
• Timely filing of accounts and confirmation statements to ensure compliance.
• Management’s ability to convert consultancy engagements into consistent revenue streams.