FIG AND FOX DESIGN LTD

Executive Summary

Fig and Fox Design Ltd shows signs of financial improvement with better working capital and reduced net liabilities but remains in a negative equity position. The company’s ability to meet short-term liabilities is currently adequate, though long-term creditor levels pose a risk. Conditional credit approval is recommended with close monitoring of cash flows, profitability, and debt management going forward.

FIG AND FOX DESIGN LTD - Analysis Report

Company Number: 14182631

Analysis Date: 2025-07-29 18:04 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Fig and Fox Design Ltd is a very young private limited company operating in the retail sector. Its net liabilities position and negative shareholders’ funds indicate balance sheet weakness. However, recent improvements in net current assets and a reduction in net liabilities suggest some financial recovery. The company’s ability to meet short-term obligations is supported by positive working capital, but the high level of long-term creditors remains a concern. Approval could be considered if additional security or guarantees are provided and if the company demonstrates improved profitability and cash flow stability in upcoming periods.

2. Financial Strength:
   The company’s net assets improved from a negative £41k in 2023 to a negative £22k in 2024. Fixed assets increased marginally to £24k, and current assets grew significantly to £98k, supporting liquidity. The current liabilities decreased sharply to £26k from £119k, reflecting better short-term balance sheet management. However, long-term liabilities remain constant at about £118k, which continues to pressure overall net asset value and equity. The negative shareholder funds reflect accumulated losses, which reduces financial resilience.

3. Cash Flow Assessment:
   Net current assets are positive at £71.6k, indicating adequate short-term liquidity to meet immediate debts. The company has improved working capital significantly since the previous year. The increase in current assets, particularly cash or receivables, is a positive sign. However, the large long-term creditor balance suggests reliance on external funding or deferred payments, which may affect cash flow sustainability. Careful monitoring of cash inflows and outflows is essential to ensure the company can service both short-term and long-term obligations.

4. Monitoring Points:

• Monitor profitability trends and cash generation in the next 12 months to confirm ongoing viability.
• Watch long-term liabilities and ensure any repayment plans are on track.
• Review management’s ability to control costs and improve equity position.
• Track any changes in trade creditor days and debtor collections to avoid liquidity squeezes.
• Confirm no adverse changes in director or ownership status that may affect governance or financial stability.