FEC GENESIS SOCIAL ENTERPRISE LTD

Executive Summary

FEC Genesis Social Enterprise Ltd is an active micro-entity with early-stage operations reflected in limited financial history. While short-term liquidity appears manageable, net liabilities and significant deferred income raise moderate solvency and cash flow concerns. Regulatory compliance is up to date, but further review of financial and operational details is warranted to assess sustainability.

FEC GENESIS SOCIAL ENTERPRISE LTD - Analysis Report

Company Number: 14812288

Analysis Date: 2025-07-29 14:17 UTC

1. Risk Rating: MEDIUM
   The company shows some early-stage financial instability with net liabilities despite positive net current assets. As a newly incorporated micro-entity, limited historical financial data restricts a full assessment, but current indicators suggest moderate risk.

2. Key Concerns:

• Net Liabilities: The balance sheet reports net liabilities of £4,377 as at 30 April 2024, indicating the company’s total liabilities exceed its assets when accruals and deferred income are included.
• Accruals and Deferred Income: A sizeable deferred income balance of £8,035 relative to total assets suggests potential future revenue recognition issues or cash flow timing concerns.
• Short Operating History: Incorporated in April 2023, the company has less than one full year of trading history, limiting insight into operational stability and profitability trends.

3. Positive Indicators:

• Positive Net Current Assets: The company maintains net current assets of £3,405, indicating short-term obligations can currently be met with available current assets.
• Compliance: No overdue filings for accounts or confirmation statements, indicating good regulatory compliance and governance so far.
• Employee Base: An average of five employees (including directors) suggests an operating structure in place to support ongoing activities.

4. Due Diligence Notes:

• Review Deferred Income Details: Investigate the nature and timing of the £8,035 deferred income to assess cash flow impact and revenue recognition policies.
• Examine Capital Structure and Funding: Understand how the negative shareholders’ funds arose and plans for capitalization or debt management to improve solvency.
• Assess Operational Plans and Market Position: Given the social enterprise classification and diverse SIC codes related to sports facilities and health/social work, evaluate business model robustness and revenue sources.
• Director and PSC Changes: Monitor the impact of the resignation of a PSC/director shortly after incorporation and any subsequent governance implications.