FIDLAN LIMITED

Executive Summary

Fidlan Limited exhibits weak financial health with worsening negative equity and significant working capital deficits, raising concerns over its ability to meet debt and commercial obligations. Liquidity constraints and reliance on director loans amplify credit risk. Without corrective actions or additional funding, credit extension is not recommended at this stage.

FIDLAN LIMITED - Analysis Report

Company Number: 13007897

Analysis Date: 2025-07-20 14:38 UTC

1. Credit Opinion: DECLINE
   Fidlan Limited currently demonstrates significant financial weakness with persistent negative net assets and net current liabilities. The company’s balance sheet shows deterioration from the prior year, indicating worsening financial stress. Given the micro-entity status and very limited capital (£10 share capital), the ability to service debt or meet commercial obligations appears highly constrained. There is no evidence of profitability or cash flow generation, and the company is reliant on director advances. Without a clear turnaround plan or additional financial support, extending credit is high risk.

2. Financial Strength:
   The company’s balance sheet as of 30 November 2023 reports fixed assets of £1,480 and current assets of £1,348 against current liabilities of £7,760, resulting in net current liabilities of £6,412. Total net assets stand at a negative £4,932, worsening from a negative £1,902 the previous year. Shareholders’ funds remain negative, reflecting accumulated losses and insufficient equity investment. This indicates insolvency on a balance sheet basis. The small asset base and growing creditor exposure undermine financial strength and capital adequacy.

3. Cash Flow Assessment:
   Current assets mainly consist of cash and receivables at £1,348, which are insufficient to cover short-term liabilities of £7,760. The resulting working capital deficit highlights liquidity risk and potential difficulty in meeting near-term obligations. The company’s reliance on director loans (£1,995 outstanding) suggests external finance is limited or unavailable. There is no filed income statement, but the negative equity and increasing liabilities point to ongoing cash flow challenges. The average workforce of 2 employees implies a low operating cost base but does not offset liquidity risk.

4. Monitoring Points:

• Monitor upcoming filings and any changes in net current liabilities or net assets to detect improvement or further deterioration.
• Watch for director loan repayments or additional equity injections indicating management commitment to financial support.
• Track payment patterns on trade and creditor accounts for any signs of delays or defaults.
• Review any material changes in business activity or contracts that could improve cash flow generation.
• Assess director conduct and governance for indications of sound financial stewardship or emerging risks.