FIDUCITY SERVICES LIMITED

Executive Summary

Fiducity Services Limited presents a modestly positive net asset position but exhibits a liquidity profile heavily reliant on large debtor balances with minimal cash reserves. While regulatory compliance and stable management are strengths, the narrow working capital buffer and debtor concentration represent moderate risk factors warranting further review. Overall, the company is rated medium risk pending deeper analysis of cash flows and debtor quality.

FIDUCITY SERVICES LIMITED - Analysis Report

Company Number: 14655226

Analysis Date: 2025-07-29 18:14 UTC

1. Risk Rating: MEDIUM

The company shows a modest net asset position with a narrow positive working capital buffer, but the extremely high debtor balances relative to minimal cash holdings raise concerns about liquidity and cash flow sufficiency.

2. Key Concerns:

• Liquidity Risk: Cash on hand is minimal (£1,521), while current liabilities are very large (£15.57M), almost fully matched by debtors of similar magnitude. This indicates potential dependency on timely debtor collection to meet obligations.
• Debtor Concentration: The company’s current assets are almost entirely debtors, which may be concentrated with few clients or subject to collectability risk, impacting operational cash flow.
• Limited Operational Scale: With only two employees (both directors) and small share capital (£200), operational resilience and growth potential may be constrained.

3. Positive Indicators:

• Positive Net Current Assets: Although narrow, net current assets increased from £133k to £296k year-over-year, indicating some improvement in working capital.
• No Filing or Compliance Issues: All accounts and confirmation statements are filed on time, suggesting good regulatory compliance.
• Stable Ownership and Management: Both directors are also significant shareholders, indicating aligned interests and stable control.

4. Due Diligence Notes:

• Investigate the nature, aging, and concentration of debtor balances to assess collectability and credit risk.
• Review cash flow statements or management accounts to understand actual liquidity and timing of cash inflows/outflows.
• Assess business model sustainability given the small team size and the management consultancy SIC code.
• Confirm absence of contingent liabilities or off-balance-sheet obligations that may affect solvency.
• Evaluate any related party transactions given director/shareholder overlap.