Company Number: 12731608

Analysis Date: 2025-07-20 18:36 UTC

1. Credit Opinion: DECLINE
   FB Commissioning Limited exhibits significant financial weakness and negative equity, undermining its ability to meet debt obligations reliably. The company reported a substantial loss (£2.07m) for the year ended June 2022, reversing the prior year's profit, and its net current liabilities position (£1.31m negative working capital) indicates liquidity strain. The turnover is modest and declining slightly, which does not support recovery. Despite an auditor’s confirmation of going concern, the negative net assets and working capital deficit, combined with large current liabilities exceeding current assets, indicate elevated credit risk. Without clear evidence of financial support or turnaround strategy, approval for credit is not advisable.

2. Financial Strength:
   The balance sheet reveals a deterioration from positive shareholders’ funds (£756,974) in 2021 to negative equity of (£1,314,275) in 2022. Current liabilities (£29.5m) exceed current assets (£28.2m) resulting in negative net current assets and an overall net liability position. Fixed assets are negligible. The company’s share capital (£2) is minimal, highlighting limited capital buffer. The large work in progress asset suggests the company is engaged in ongoing projects, but these are not converting efficiently to cash or receivables to cover short-term obligations. Overall, the financial position is weak and exposes the company to solvency risk.

3. Cash Flow Assessment:
   Although detailed cash flow statements are not provided, the negative net current assets and large current liabilities relative to current assets suggest constrained liquidity and potential inability to meet short-term liabilities when due. Debtors have decreased year-on-year, which may indicate collection issues or reduced sales. The high level of work in progress may tie up cash resources. The company’s administrative expenses significantly exceed turnover, implying ongoing cash burn. Liquidity management appears problematic, raising concerns about the company’s capacity to service debt or absorb financial shocks.

4. Monitoring Points:

• Monitor quarterly management accounts for cash flow improvements and reduction in current liabilities.
• Track turnover and gross margin trends to assess operational improvements.
• Watch for any capital injections or refinancing activity that may shore up net assets and liquidity.
• Review directors’ strategies for returning the company to profitability and improving working capital management.
• Assess any related party transactions or guarantees supporting the company’s going concern status.