FIRST INLINE PRODUCTS LIMITED

Executive Summary

First Inline Products Limited is in a poor financial position with large negative working capital and shareholders’ funds, indicating a high risk of default and insolvency. The company’s liquidity constraints and deteriorating balance sheet suggest it is currently unable to service debt or meet financial commitments reliably. Credit facilities are not recommended unless substantial financial improvement or support is demonstrated.

FIRST INLINE PRODUCTS LIMITED - Analysis Report

Company Number: 12774148

Analysis Date: 2025-07-20 18:27 UTC

1. Credit Opinion:
   DECLINE. First Inline Products Limited exhibits significant financial distress, reflected by persistent and worsening negative net current assets and shareholder funds. The company's current liabilities far exceed current assets by a large margin (£40,241 negative working capital as of 31 July 2024), indicating liquidity issues and a high risk of default on short-term obligations. The absence of any significant equity buffer and ongoing losses suggest poor ability to service debt or meet commercial payment terms reliably.

2. Financial Strength:
   The balance sheet shows very weak financial health. Fixed assets are minimal (£3,033), and current liabilities have increased sharply from £13,130 in 2023 to £44,267 in 2024. Shareholders’ funds have deteriorated from -£8,517 to -£37,208 in one year, indicating accumulated losses and erosion of capital. This negative equity position implies the company’s liabilities exceed its assets, undermining solvency and overall financial stability.

3. Cash Flow Assessment:
   Current assets are very low (£4,026) relative to current liabilities, resulting in a significant net current liability position. This indicates poor liquidity and insufficient working capital to meet short-term debts and operational expenses. The company’s ability to generate positive operating cash flow or access additional financing is questionable given the negative net assets and lack of equity cushion.

4. Monitoring Points:

• Working capital ratio: Track improvements or further deterioration in current assets vs. liabilities.
• Shareholders’ funds: Monitor changes in equity to assess if losses continue or capital injections occur.
• Cash flow statements (if available): Review operating cash flow trends and financing activities.
• Director actions: Watch for restructuring efforts or external funding to stabilize finances.
• Payment history: Observe any late payments or defaults on trade and financial obligations.