FIBERSENSE UK LTD

Executive Summary

Fibersense UK Ltd exhibits a weak financial position with significant accumulated losses and negative net assets, heavily reliant on its parent company for liquidity support. The company's working capital deficit and high current liabilities relative to assets raise concerns about its ability to meet short-term obligations independently. Given these factors, credit facilities should be declined until financial stability improves and independent cash flow generation is demonstrated.

FIBERSENSE UK LTD - Analysis Report

Company Number: 14527932

Analysis Date: 2025-07-29 12:51 UTC

1. Credit Opinion: DECLINE
   Fibersense UK Ltd demonstrates substantial financial weakness with negative net assets of £245,554 as of June 2024, worsening from prior year losses. Current liabilities significantly exceed current assets by £368,228, indicating poor short-term liquidity and working capital deficits. The company is reliant on its parent company for going concern support, which increases credit risk. The absence of profitability, material accumulated losses, and reliance on group funding suggest limited capacity to service external debt or meet commercial obligations independently.

2. Financial Strength:
   The balance sheet reveals negative shareholders' funds and net liabilities that have nearly tripled from £83,415 in 2023 to £245,554 in 2024. Fixed assets of £122,674 are outweighed by total current liabilities of £461,222, including £313,569 owed to group undertakings, indicating high leverage and dependency on intra-group financing. The company holds minimal equity (share capital £1) and accumulated losses primarily drive the negative net asset position. This weak capital structure undermines financial resilience.

3. Cash Flow Assessment:
   Cash on hand increased to £43,462 from £500, yet remains insufficient to cover current liabilities, which have increased sharply. The negative net current assets position (-£368,228) implies the company is operating with a working capital deficit, raising concerns about its ability to meet short-term obligations without additional external funding or parent support. Trade debtors of £33,874 offer some liquidity but are insufficient to offset creditor demands. The company’s cash flow is precarious and heavily reliant on related party support.

4. Monitoring Points:

• Watch for improvements in net current assets and reduction of reliance on group loans.
• Monitor future profitability and cash flow generation to strengthen working capital.
• Track any changes in the parent company's support commitment or group funding arrangements.
• Observe any material changes in trade creditor balances or overdue payments, which could indicate further liquidity stress.
• Review subsequent filing of accounts and confirmation statements to confirm continued compliance and operational status.