FEDCOM LTD

Executive Summary

FEDCOM LTD presents as a small but stable micro-entity with positive net assets and timely compliance. Its limited operational scale and minimal liquidity suggest moderate credit exposure with a need for close monitoring of working capital and cash flow. The company's financial trajectory is positive but constrained by size.

FEDCOM LTD - Analysis Report

Company Number: 12426882

Analysis Date: 2025-07-20 14:27 UTC

1. Credit Opinion: APPROVE with caution. FEDCOM LTD is a micro-entity with limited scale and no employees, operating since 2020 in building completion and finishing. The company shows positive net assets and working capital, indicating it is currently solvent and can meet short-term obligations. However, the low level of current assets and absence of employees suggest a very small operational footprint and potentially limited cash flow generation. The director has maintained timely filings and stable shareholder funds, but given the minimal scale, credit exposure should remain modest with close ongoing monitoring.

2. Financial Strength: The company's balance sheet reflects modest fixed assets (£1,503) and very low current assets (£94) against current liabilities reported as negative figures (which appear as creditors). The net current assets figure (£2,598) and net assets (£4,101) improved from the prior year, indicating a strengthening equity base. The increase in net assets from £3,012 to £4,101 year-on-year implies positive retained earnings or capital injections. No long-term liabilities are noted, which reduces leverage risk. Overall, the financial position is stable but very small in scale.

3. Cash Flow Assessment: Liquidity appears constrained with minimal current assets (largely cash or equivalents) and very low working capital in absolute terms. The reported net current assets seem unusually high relative to current assets and liabilities, suggesting possible classification or reporting nuances. The absence of employees and minimal operational assets indicate the company likely manages cash flow tightly, possibly relying on director interventions or external financing. No detailed profit and loss data is available, limiting full cash flow assessment. The company should maintain close cash flow management to meet obligations.

4. Monitoring Points:

• Watch for changes in current liabilities and working capital to ensure ongoing liquidity.
• Monitor annual net asset trends for sustained growth or erosion.
• Review any changes in operational scale, such as hiring employees or acquiring assets.
• Verify director conduct and compliance with filing deadlines continue.
• Be alert to any name changes or restructuring that might affect credit risk (recent name change from GVC LOGISTICS LTD in June 2024).