FAZIO LONDON LIMITED

Executive Summary

Fazio London Limited exhibits weak financial health with escalating net liabilities and negative working capital, undermining its ability to meet short-term obligations. The company’s micro-entity status, absence of employees, and lack of profitability suggest high credit risk and limited repayment capacity. Without evidence of financial or operational improvement, credit facilities are not recommended at this time.

FAZIO LONDON LIMITED - Analysis Report

Company Number: 13971943

Analysis Date: 2025-07-29 19:36 UTC

1. Credit Opinion:
   DECLINE. FAZIO LONDON LIMITED is a micro-entity with very limited financial resources and negative net assets worsening year on year. The company’s balance sheet shows significant net current liabilities and net negative shareholders’ funds (£-11,733 as of March 2024), indicating an inability to meet short-term obligations without external support. There is no evidence of profitability or positive cash flow, and the company employs no staff, suggesting limited operational scale. Given these factors, the company is currently unable to service debt or sustain credit facilities without substantial improvement or external capital injection.

2. Financial Strength:
   The company’s financial position is weak. Fixed assets of only £523 are negligible relative to current liabilities of £13,154, resulting in net current liabilities of £12,016. The total net liabilities position has deteriorated from £4,494 in 2023 to £11,733 in 2024. Shareholders’ funds are deeply negative, reflecting accumulated losses or funding gaps. This lack of equity buffer and negative net assets imply insolvency risk if the company cannot reverse this trend promptly.

3. Cash Flow Assessment:
   Current assets of £1,138—presumably mostly cash or receivables—are far outweighed by short-term creditors, indicating liquidity strain. The large negative working capital position signals the company cannot cover its immediate debts from liquid resources. The absence of employees may reduce overhead cash burn, but also suggests minimal operational activity and revenue generation capacity. There is no available cash flow statement, but the balance sheet points to ongoing funding challenges and potential reliance on shareholder or related party support.

4. Monitoring Points:

• Monitor quarterly cash flow and liquidity position closely to detect any worsening of net current liabilities.
• Watch for improvements in working capital and reduction of creditor balances.
• Track any equity injections or borrowing that may support solvency.
• Review trading performance and revenue growth to assess business viability.
• Confirm timely filing of accounts and confirmation statements to avoid regulatory risk.
• Keep an eye on director actions and any changes in ownership or control that may impact credit risk.