FLAMBARD WILLIAMS LTD
Company number 08199295 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Credit Analysis: FLAMBARD WILLIAMS LTD
1. Credit Opinion: CONDITIONAL
The company demonstrates a remarkable turnaround from negative net assets of -£548,446 (2023) to positive net assets of £1,166,253 (2025), indicating strong recent profitability. However, several structural concerns warrant a conditional rating:
- Balance sheet quality: 90% of current assets comprise debtors (£2.69M of £2.99M), creating significant concentration and collectability risk
- Volatile financial history: Net assets have swung dramatically between positive and negative five times in ten years, suggesting a cyclical or transaction-driven business model
- Related party exposure: Director's loan of £228,693 owing from the sole director introduces extraction risk
- Opaque creditor structure: The "other creditor" of £1.175M requires clarification on its nature and terms
Any credit facility should be conditional on satisfactory explanation of the large debtor book, confirmation of the director's loan repayment terms, and identification of the other creditor.
2. Financial Strength
Balance Sheet Summary (Year Ending 30 September 2025)
| Item | £ |
|---|---|
| Fixed Assets | 258,910 |
| Current Assets | 2,986,486 |
| Current Liabilities | (2,079,143) |
| Net Current Assets | 907,343 |
| Net Assets | 1,166,253 |
Positive indicators: - Net assets moved from deeply negative to £1.17M positive in two years - Corporation tax liability of £469,406 (up from £161,477) confirms significant taxable profits generated - Bank borrowings cleared entirely (was £41,189 in 2024, now £0) - Shareholders' funds restored to £1.17M from -£548K
Concerning indicators: - Share capital remains at just £1 – the entire equity base derives from retained profits, which could erode quickly in a downturn - Investments of £213,168 in unlisted entities are carried at cost with no impairment provision – realisable value uncertain - Tangible fixed assets of £45,742 provide negligible asset backing for creditors - The company has oscillated between solvency and insolvency multiple times, indicating fragile underlying economics
Historical Volatility:
| Year | Net Assets | Direction |
|---|---|---|
| 2016 | £186,467 | Positive |
| 2017 | £99,281 | Declining |
| 2018 | £36,850 | Declining |
| 2019 | -£247,356 | Negative |
| 2020 | -£558,405 | Deteriorating |
| 2021 | £682,670 | Recovered |
| 2022 | -£656,639 | Collapsed |
| 2023 | -£548,446 | Improving |
| 2024 | £284,298 | Positive |
| 2025 | £1,166,253 | Strengthening |
This pattern suggests the business is highly sensitive to property market cycles and/or is transaction-driven rather than generating recurring revenue.
3. Cash Flow Assessment
Liquidity Position: - Current ratio: 1.44x (£2.99M / £2.08M) – adequate but not comfortable given debtor concentration - Cash of £294,803 against current liabilities of £2.08M – cash coverage ratio of just 0.14x - Quick ratio (debtors + cash / current liabilities): 1.44x – identical to current ratio as no inventory exists
Working Capital Concerns: - Trade debtors surged from £361,509 to £941,653 (160% increase year-on-year) – this outpaces reasonable revenue growth and suggests either extended payment terms or collection difficulties - "Other debtors" of £1,520,133 is the single largest balance sheet item – the nature and recoverability of this sum is critical to assess - VAT payable jumped from £16,832 to £155,691 – while consistent with increased turnover, this represents a near-term cash outflow - Corporation tax of £469,406 is a substantial imminent cash commitment
Cash Conversion Risk: The business appears asset-rich on paper but cash-poor relative to its obligations. With £2.69M tied up in debtors and only £295K in cash, the company is heavily dependent on timely debtor collection to meet its liabilities. Any slowdown in collections could create immediate liquidity pressure.
Director's Loan: The director's loan of £228,693 owing from Mr Whetstone represents funds extracted from the business. If this is not on arm's-length repayment terms, it represents an additional risk that company assets could be diverted to the controller ahead of creditor claims.
4. Monitoring Points
| Metric | Current | Watch Threshold | Rationale |
|---|---|---|---|
| Trade debtors days | To be calculated | >90 days | Rapid debtor growth signals collection risk |
| Other debtors composition | £1.52M | Any increase without clarity | Largest single asset – must understand nature |
| Director's loan balance | £228,693 | Any increase | Related party extraction risk |
| Net current assets | £907K | Below £500K | Early warning of working capital stress |
| Cash balance | £295K | Below £150K | Liquidity buffer adequacy |
| Corporation tax paid | £469K due | Monitor payment | Large obligation due shortly |
| Other creditor identity | £1.18M | Clarify immediately | Unknown creditor could have priority claims |
Additional Due Diligence Required: 1. Breakdown of "other debtors" – are these related party, deposits, or genuine third-party trade balances? 2. Nature of "other creditor" – is this a related party, a property developer obligation, or trade finance? 3. Terms of the director's loan – repayment schedule, interest rate, security 4. Identity and financial standing of Qubic Trustees Ltd as the controlling PSC 5. Ageing profile of trade debtors to assess collectability 6. Confirmation of whether the business model is commission-based (agency) or involves principal trading in property
Property Market Sensitivity: As a real estate agency (SIC 68310), the business is directly exposed to UK property market cycles. The website language referencing "Invest Smart Live Bold" and "Discount Voucher" suggests the company may be marketing investment property opportunities, which carries additional reputational and regulatory risk if clients suffer losses.