FENSU LIMITED

Executive Summary

Fensu Limited, a newly incorporated private company in the unlicensed restaurant sector, displays early financial distress characterized by negative net assets and working capital deficits, posing high solvency and liquidity risks. While compliance and asset holdings are positive, the limited track record and current financial position warrant thorough due diligence on cash flow management and business viability before investment consideration.

FENSU LIMITED - Analysis Report

Company Number: 14801771

Analysis Date: 2025-07-29 15:34 UTC

1. Risk Rating: HIGH
   Fensu Limited presents a high risk profile primarily due to its negative net current assets and shareholders' funds, indicating solvency and liquidity pressures within its first financial year. The company’s liabilities exceed its assets, and it operates with minimal equity, signaling potential challenges in meeting short-term obligations.

2. Key Concerns:

• Negative Working Capital: The company’s current liabilities (£14,402) exceed current assets (£9,338) by £5,064, suggesting liquidity constraints and possible cash flow difficulties in meeting immediate debts.
• Negative Net Assets and Shareholders’ Funds: Total net assets stand at -£786 with shareholders’ funds at -£886, reflecting accumulated losses and insufficient capital buffer.
• Limited Operational History and Scale: Incorporated in April 2023, the company has less than one year of trading history, making it difficult to assess operational stability and sustainability. The business employs only 3 staff and reports a loss, which may indicate early stage operational challenges.

3. Positive Indicators:

• Compliance with Filing Obligations: The company has filed accounts and confirmation statements on time, showing regulatory compliance and governance diligence.
• Ownership and Control Transparency: The significant control is clearly documented, with no apparent governance issues or director disqualifications noted.
• Tangible Fixed Assets: The company holds tangible fixed assets valued at £4,278, which could support ongoing operations and potential value recovery.

4. Due Diligence Notes:

• Examine Cash Flow and Financing Arrangements: Investigate how the company is managing liquidity pressures and whether there are any external financing sources or shareholder loans supporting operations.
• Assess Business Model and Market Position: Given the SIC code (56102 - Unlicensed restaurants and cafes), evaluate the company’s business plan, market demand, and competitive landscape for sustainability.
• Review Directors’ Strategy and Future Projections: Obtain management commentary or forecasts to understand plans to improve profitability and capital structure. Also, verify the impact of any related party transactions or guarantees.