Company Number: 12743810

Analysis Date: 2025-07-20 18:26 UTC

1. Risk Rating: MEDIUM
   Fitzpatrick Fabrications Ltd shows improving net assets and maintained positive working capital in the most recent financial year, which suggests a move towards financial stability. However, relatively high trade debtors and historical periods of negative shareholders’ funds introduce some concerns regarding liquidity and operational resilience. The company remains active with no overdue filings, supporting regulatory compliance.

2. Key Concerns:

• Liquidity risk from high trade debtors: Debtors represent a significant portion of current assets (£564k vs. £120k cash in 2024), potentially straining cash flow if collections slow or defaults occur.
• Volatility in net assets and working capital: The company moved from negative shareholders’ funds in 2020 and 2021 to a positive £312k in 2024, indicating past financial stress and possible operational challenges during early years.
• Dependency on parent company control and related party balances: Amounts owed to group undertakings remain constant (£162k), suggesting reliance on intra-group financing which could impact independence and risk profile.

3. Positive Indicators:

• Improved financial position in 2024: Net assets nearly tripled from £107k to £312k year-on-year, driven by reduced current liabilities and controlled stock levels.
• Positive working capital: Current assets exceed current liabilities by £312k, indicating the company can meet short-term obligations.
• Compliance with statutory requirements: No overdue accounts or confirmation statements, no indication of audit requirement breach, and proper filing status all reflect good governance practices.
• Growth in workforce: Average employees increased from 19 to 34, suggesting operational expansion and potentially higher capacity/utilisation.

4. Due Diligence Notes:

• Review the credit quality and aging profile of trade debtors to assess collection risk and potential impairment.
• Investigate the nature and terms of amounts owed to group undertakings to understand financial dependence and possible contingent risks.
• Examine the company’s cash flow statements to confirm operational cash generation and liquidity sufficiency beyond balance sheet snapshots.
• Assess management’s strategy and financial forecasts to validate sustainability and future growth prospects, especially given turnaround from past negative equity.
• Confirm no director disqualifications or governance issues beyond what is publicly disclosed, especially concerning the recent director resignation.