FERNANDO BUSINESS SOLUTIONS LTD

Executive Summary

Fernando Business Solutions Ltd shows clear signs of financial distress with ongoing negative net assets and working capital deficits over three years, raising significant solvency and liquidity concerns. However, the company maintains regulatory compliance and operates in a low-capital consultancy sector. Further investigation into cash flow, management plans, and revenue sustainability is essential before considering investment.

FERNANDO BUSINESS SOLUTIONS LTD - Analysis Report

Company Number: 13952444

Analysis Date: 2025-07-29 16:51 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity risks, as evidenced by persistent net current liabilities and negative net assets over three consecutive years. This financial position suggests an inability to meet short-term obligations and ongoing operational challenges.

2. Key Concerns:

• Negative Net Assets: The company has a worsening net liability position, increasing from -£436 in 2022 to -£1,066 in 2024, indicating accumulated losses or insufficient capital.
• Working Capital Deficit: Current liabilities consistently exceed current assets by a substantial margin (-£946 to -£1,666), implying liquidity problems and potential difficulties in meeting short-term debts.
• No Employees and Small Asset Base: The absence of employees suggests reliance on the director or external contractors, and minimal fixed assets (£600 in 2024) point to a lack of tangible resources to support operations or creditworthiness.

3. Positive Indicators:

• No Overdue Filings: The company is compliant with filing deadlines for accounts and confirmation statements, reflecting adequate regulatory compliance and governance in this regard.
• Sole Director and PSC Control: Clear ownership and control by a single individual may simplify decision-making and accountability.
• Business Sector: Operating in management consultancy, tax, and accounting services, sectors that typically require low capital investment and can generate steady cash flows if client acquisition is successful.

4. Due Diligence Notes:

• Examine Cash Flow Statements and Profit & Loss Accounts: Detailed financial performance data is needed to assess operational cash generation and the trajectory of losses.
• Review Director’s Plans to Address Negative Equity: Investigate whether capital injections, restructuring, or operational improvements are planned or underway.
• Assess Client Base and Revenue Streams: Confirm the company's ability to generate sustainable revenue given the lack of employees and limited assets.
• Verify Any Contingent Liabilities or Debts: Given the high current liabilities, it is important to understand the nature and collectability of debts owed and owed to the company.
• Confirm No Director Disqualifications or Legal Issues: Although not indicated, verifying director conduct records is prudent.