Credit Analysis: FELLEY LIMITED

1. Credit Opinion: DECLINE

Reasoning: Felley Limited presents an unacceptable credit risk profile. The company has maintained negative net assets for at least a decade, with liabilities exceeding assets by £72,707 as at 31 March 2025. The balance sheet shows zero current assets against £147,707 in current liabilities, creating a complete liquidity vacuum. There is no visible revenue stream, no working capital, and no capacity to service additional debt. The micro-entity filing provides minimal transparency, and the SIC classification (membership organisations) offers no indication of commercial trading activity. This entity appears to be a non-trading vehicle with persistent insolvency.

2. Financial Strength

Balance Sheet Summary (FY2025): | Item | £ | |------|---| | Fixed Assets | 75,000 | | Current Assets | 0 | | Total Assets | 75,000 | | Current Liabilities | (147,707) | | Long-term Liabilities | 0 | | Net Assets | (72,707) |

Analysis:

• Technical Insolvency: Net assets have been negative throughout the entire 10-year review period. The deficit peaked at £110,749 in 2016, improved to £57,195 by 2021, but deteriorated again in 2022 and has since plateaued around £73,000 negative. This is not a temporary position—it is structural.

• Asset Quality: Fixed assets of £75,000 have remained unchanged since at least 2020, suggesting either a fully depreciated property or an illiquid long-term holding with no active management. No current assets exist—no cash, no debtors, no stock.

• Liability Profile: All £147,707 in liabilities are classified as current (due within one year). The 2024 accounts showed £12,727 in long-term creditors, which has now been reclassified to current—indicating obligations are accelerating. The creditor base has grown 9.2% year-on-year (£135,216 to £147,707).

• Capital Structure: Share capital is a nominal £100. Shareholders' funds stand at negative £72,707, meaning accumulated losses have entirely eroded any equity cushion. There is no retained profit reserve.

3. Cash Flow Assessment

Liquidity Position: CRITICAL

• Zero Working Capital: The company has no current assets whatsoever. It cannot meet any creditor demand from balance sheet resources.

• No Visible Revenue: Micro-entity accounts do not disclose turnover or profit & loss. Zero employees and the nature of the balance sheet suggest this entity generates no trading income.

• Creditor Dependency: The company's continued existence appears entirely dependent on creditor forbearance. Creditors are not enforcing demands despite the company being balance-sheet insolvent.

• Cash Flow Concerns: Without revenue, there is no operating cash flow to service existing obligations, let alone new debt. Any lending would be entirely speculative on the company's ability to generate income from an apparently dormant asset base.

4. Monitoring Points

Should any exposure exist or be considered (which is not recommended), the following would require close observation:

1. Creditor Composition: Identify who the £147,707 is owed to. If related party (director), there may be implicit support. If third-party, enforcement risk is significantly higher.

2. Fixed Asset Nature: Determine what the £75,000 fixed asset represents. If it's a property with value above book, this could provide latent security. If it's an intangible or depreciated asset, it offers no recovery value.

3. Related Party Transactions: Director Michael Parker owns 50-75% of shares. The relationship between director loans, creditor balances, and any support arrangements is critical but undisclosed in micro-entity filings.

4. Filing Compliance: Accounts were approved 21 December 2025 for a 31 March 2025 year-end—a 9-month delay. While not overdue at Companies House, this lag raises questions about administrative urgency.

5. Trading Status Confirmation: Clarify whether this entity is actively trading or effectively dormant. The SIC code (membership organisations) and zero employees suggest no commercial operations.

6. Long-term Creditor Reclassification: The movement of £12,727 from long-term to current liabilities between 2024 and 2025 indicates obligations are becoming more immediate—monitor for further acceleration.