FEEL FAB X LIMITED

Executive Summary

Feel Fab X Limited is a micro-entity exhibiting persistent negative net assets and shareholders’ funds, reflecting financial weakness and limited ability to service debt. Liquidity appears constrained, with no positive working capital in recent years. Given these factors, extending credit is not recommended without significant financial improvement or evidence of strengthened cash flow.

FEEL FAB X LIMITED - Analysis Report

Company Number: 12765275

Analysis Date: 2025-07-20 18:35 UTC

1. Credit Opinion: DECLINE
   Feel Fab X Limited demonstrates a consistent pattern of negative net assets and shareholders’ funds (£-8 as of the latest 2024 accounts). The absence of significant assets and persistent net liabilities indicate weak financial footing. Without positive equity or retained earnings, the company lacks a buffer to absorb operational or economic shocks, raising high credit risk. Given these conditions, approval for new credit facilities is not advisable at this time.

2. Financial Strength:
   The company is classified as a micro-entity and operates with minimal fixed assets and working capital. Historical data shows a sharp decline from positive net assets (£2,942 in 2020) to negative net liabilities (£-8 from 2022 onward). Current liabilities remain minimal (£8), but so do assets, implying limited resources to meet obligations beyond the short term. The sustained negative equity position reflects accumulated losses or erosion of capital, undermining financial stability.

3. Cash Flow Assessment:
   Current data does not report cash or detailed current asset components for recent years, but net current assets are reported as zero or negative. The 2021 accounts showed equal current assets and liabilities (£145), indicating no net working capital. This raises concerns about liquidity and the company’s ability to fund day-to-day operations or repay short term debts without external support. The absence of positive working capital and negative equity suggests constrained cash flow.

4. Monitoring Points:

• Monitor upcoming filed accounts for any improvement in net assets or reversal of net liabilities.
• Watch for increases in current assets, particularly cash or receivables, that improve liquidity.
• Track any changes in director status or ownership that might signal restructuring or capital injections.
• Review payment behavior on existing obligations and any new credit applications carefully.