FILIPINO STAFF LTD

Executive Summary

Filipino Staff Ltd has shown a positive turnaround in net assets and maintains a modestly positive working capital position. However, the company’s financial strength is fragile due to minimal tangible assets and reliance on unsecured director loans. Credit approval is recommended with conditions emphasizing close monitoring of liquidity and related party transactions to mitigate risk.

FILIPINO STAFF LTD - Analysis Report

Company Number: 13541734

Analysis Date: 2025-07-29 19:02 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Filipino Staff Ltd demonstrates modest financial improvement, turning net liabilities into net assets in the latest year. The company operates within the micro-entity threshold and has maintained positive net current assets, indicating short-term liquidity. However, the net asset base is very thin (£1,036), and there are significant related party loans with no formal repayment terms, which presents a risk. Continued reliance on director loans and limited fixed assets constrain financial strength. Approval is recommended with conditions requiring close monitoring of liquidity and related-party transactions, and potentially seeking guarantees or additional collateral.

2. Financial Strength:
   The balance sheet shows a small but positive net asset position (£1,036) at the 2024 year-end, an improvement from prior net liabilities. Fixed assets have increased slightly but remain minimal (£2,925). Current assets exceed current liabilities by £2,781, reflecting a modest working capital buffer. However, accruals and deferred income of £4,670 reduce total net assets. The company’s equity is primarily supported by director loans and small share capital (£100). The financial structure is weak, with limited tangible asset backing and dependency on related party funding.

3. Cash Flow Assessment:
   Current assets mainly comprise cash and receivables that provide sufficient coverage for current liabilities. The working capital position is positive, but the tight margin suggests limited cushion against unexpected cash flow disruptions. The directors have extended interest-bearing loans to the company, with repayments occurring, which supports liquidity. However, the absence of formal loan terms and the unsecured nature of these loans expose the bank to credit risk. No profit and loss information is provided, so operational cash flow performance cannot be fully assessed.

4. Monitoring Points:

• Regular review of updated financial statements to track net asset position and working capital trends.
• Monitoring related party loan balances and repayment schedules to ensure ongoing liquidity support is sustainable.
• Watch for any material changes in accruals and deferred income that could affect net assets.
• Directors’ conduct and commitment to financial stewardship, given the company's reliance on director funding.
• Any indications of business growth or decline in employment placement activity that could impact cash flow stability.