FAZTECH LIMITED

Executive Summary

FAZTECH LIMITED is a recently established private company showing early signs of financial improvement with a small positive net asset base and compliance with filing obligations. However, liquidity remains constrained due to limited cash reserves and outstanding tax liabilities, supported by director loans. Careful monitoring of cash flow and financing arrangements is recommended to mitigate medium solvency and liquidity risks.

FAZTECH LIMITED - Analysis Report

Company Number: 13835989

Analysis Date: 2025-07-20 15:49 UTC

1. Risk Rating: MEDIUM
   FAZTECH LIMITED shows a modest net asset position and positive net current assets, indicating some capacity to meet short-term obligations. However, low absolute cash balances, outstanding tax liabilities, and reliance on director loans introduce moderate solvency and liquidity risks for a relatively young company.

2. Key Concerns:

• Current liabilities (£5,966) nearly equal current assets (£6,133), with very limited cash reserves (£682), suggesting tight liquidity and potential cash flow constraints.
• Significant corporation tax liability (£4,436) due within one year could strain cash resources if not adequately planned for.
• Reliance on director loan accounts (£5,451 due after one year in 2024) indicates external financing from the director, which may not be sustainable or formalized long-term.

3. Positive Indicators:

• The company has improved its net asset position from negative (£108) in 2023 to positive (£167) in 2024, showing a trend towards financial stability.
• No overdue filings for accounts or confirmation statements reflect compliance with statutory requirements and good governance discipline.
• Sole director and 75-100% controlling shareholder alignment may facilitate swift decision-making and operational agility.

4. Due Diligence Notes:

• Verify the nature and terms of the director loan accounts, including repayment schedules and any formal agreements, to assess financial support sustainability.
• Assess cash flow forecasts and working capital management to confirm ability to meet upcoming tax and creditor obligations.
• Review business plan and revenue generation capability in the plumbing, electrical installation, and equipment repair sectors to evaluate operational sustainability beyond the initial two years.