FAST LOO LIMITED

Executive Summary

FAST LOO LIMITED shows persistent liquidity challenges with negative net current assets and minimal equity, indicating financial fragility despite improved cash balances. Immediate action on working capital management, cost control, and capital strengthening is crucial to improve financial health and ensure sustainable operations.

FAST LOO LIMITED - Analysis Report

Company Number: 12504918

Analysis Date: 2025-07-29 12:17 UTC

Financial Health Assessment for FAST LOO LIMITED as of 31 March 2025

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1. Financial Health Score: D

Explanation:
The company exhibits significant liquidity stress and a weak equity base, with consistently negative net current assets over the last several years, indicating ongoing working capital challenges. The very low net asset position and small shareholders' funds also highlight fragile financial footing. While the company remains active and compliant with filings, the financial "vital signs" suggest distress symptoms that require urgent management attention.

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2. Key Vital Signs and Interpretation

Metric	2025 Value (£)	Interpretation
Current Assets	27,502	Cash and short-term assets are modest but have improved since prior years.
Cash at Bank	18,753	Cash holdings have increased, indicating some improvement in liquidity management.
Debtors	8,749	Reduction in receivables may reflect tighter credit control or declining sales.
Current Liabilities	54,373	High short-term liabilities, though slightly reduced from previous years, remain a concern.
Net Current Assets	-26,871	Negative working capital signals inability to cover short-term debts with current assets.
Net Assets (Equity)	373	Very low equity base indicates limited buffer to absorb losses or financial shocks.
Share Capital	100	Minimal share capital, typical of small private limited companies, but indicates limited funding.
Tangible Fixed Assets (Net)	34,960	Substantial long-term assets, but declining due to depreciation; may not be easily liquidated.

Additional Notes:

• The company has reduced total liabilities slightly but still carries high current liabilities relative to assets.
• Cash flow may be "healthy" compared to prior years given improved cash balances, but overall liquidity remains insufficient to cover immediate obligations.
• Provisions for liabilities have decreased, which could reflect resolution of some risks or reduction in anticipated costs.
• The company employs 3 people, indicating a small operational scale consistent with a small account category.

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3. Diagnosis: Financial Condition Assessment

FAST LOO LIMITED shows persistent symptoms of financial distress primarily related to liquidity and working capital management. The negative net current assets over multiple years indicate the company is consistently unable to meet its short-term obligations from its current assets. This is akin to a patient with a chronic condition of poor circulation—while some vital signs like cash on hand have improved, the underlying systemic problem remains.

The very low net assets and minimal shareholders’ funds suggest an extremely thin cushion against adverse events, limiting the company’s ability to absorb losses or invest in growth. The reduction in fixed assets net book value points to ongoing depreciation, which without reinvestment could hamper operational capacity.

While the company is not in liquidation or administration and is compliant with filings, these financial "symptoms" indicate a fragile balance that could deteriorate if not addressed.

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4. Recommendations: Specific Actions to Improve Financial Wellness

• Improve Working Capital Management:
  Tighten credit control to reduce debtor days and accelerate collections. Negotiate longer payment terms with suppliers to reduce immediate cash outflows, thus improving net current assets.

• Enhance Cash Flow Forecasting:
  Implement detailed cash flow monitoring to anticipate shortfalls and manage timing of receipts and payments better.

• Review Cost Structure:
  Examine operating expenses and overheads to identify possible reductions, aiming to improve profitability and cash generation.

• Consider Capital Injection:
  Seek additional equity or long-term financing to strengthen the balance sheet and provide a buffer to meet liabilities without undue stress.

• Asset Utilization:
  Evaluate fixed assets for potential sale or better utilization to unlock cash if needed, without impairing operational capacity.

• Strategic Growth Planning:
  Develop a clear plan for increasing turnover and profitability, reducing reliance on external funding and improving overall financial health.

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Summary

FAST LOO LIMITED is currently exhibiting signs of financial distress characterized by negative working capital and very low equity. Although cash balances have improved, the company struggles with meeting short-term liabilities and maintaining a healthy financial buffer. Immediate focus on cash flow management, cost control, and potential capital strengthening is essential to avoid further deterioration and stabilize the business’s financial condition.