FELDSPAR LTD

Executive Summary

Feldspar Ltd’s initial financials show a fragile financial position with significant working capital deficits and negative equity, reflecting the challenges of a startup reliant on group funding. The company currently lacks the financial strength and liquidity to support external credit without substantial improvement or guarantees. Close monitoring of trading results and capital structure is essential before credit reconsideration.

FELDSPAR LTD - Analysis Report

Company Number: 15368295

Analysis Date: 2025-07-20 11:51 UTC

1. Credit Opinion: DECLINE
   Feldspar Ltd is a newly incorporated private limited company (Dec 2023) operating in the sports activities sector. Its first financial statements (8 months) reveal a weak financial position with net current liabilities of £129,901 and shareholders’ funds negative by the same amount. The company’s liabilities substantially exceed its current assets, indicating poor liquidity and a reliance on group funding (£134,632 owed to group undertakings). Without positive trading history or profits to date, the risk of insolvency is elevated. The absence of employees and minimal operating assets further limit operational resilience. Credit approval is not recommended until the business establishes profitable operations and improves working capital, or unless robust external support or guarantees are provided.

2. Financial Strength:
   The balance sheet shows total current liabilities of £144,008 against current assets of only £14,107, resulting in a significant net current liability position. The negative shareholders’ funds reflect accumulated losses or initial startup costs funded by group loans rather than equity. There are no fixed assets reported. The company’s financial structure is weak, with an overreliance on group funds which may not be sustainable long term. Overall, the company lacks tangible net assets and equity buffer, presenting high financial risk.

3. Cash Flow Assessment:
   Liquidity is a major concern. The company’s net current liabilities position indicates inability to cover short-term debts from current assets. The working capital deficit of £129,901 suggests negative operating cash flow or that funding is primarily dependent on intra-group loans. The absence of employees and the business’s early stage suggest limited cash generation capability so far. Without clear evidence of incoming revenue or cash inflows, the cash flow outlook is fragile.

4. Monitoring Points:

• Trading performance and profitability in the next 12 months.
• Changes in net current assets and shareholder equity to assess capital strengthening.
• Reliance on group funding and any repayment or conversion to equity.
• Timely filing of next accounts and confirmation statements indicating ongoing compliance.
• Any material changes in director or ownership structure that may affect control or financial support.