FLAMINGO AND FERN LTD

Executive Summary

Flamingo and Fern Ltd is a small, privately held company exhibiting strong liquidity and positive net assets with timely regulatory compliance. While the company’s reliance on director loans and minimal equity capital warrant monitoring, current financials reflect a stable position with no immediate solvency or liquidity concerns. Further examination of operational details and loan arrangements is recommended to fully assess ongoing business sustainability.

FLAMINGO AND FERN LTD - Analysis Report

Company Number: 13168757

Analysis Date: 2025-07-20 13:50 UTC

1. Risk Rating: LOW
   Flamingo and Fern Ltd demonstrates sound financial stability with consistently positive net current assets and net assets over the last four reported years. The company is fully compliant with filing requirements, showing no overdue accounts or confirmation statements. Its small scale and exemption from audit reduce complexity but do not currently raise concerns.

2. Key Concerns:

• Reliance on Directors’ Loans: £1,386 of current liabilities are directors’ loan accounts, which although common in small companies, indicates dependence on director funding that could strain liquidity if not managed.
• Minimal Share Capital: The company has a nominal share capital of £2, which limits equity buffer against losses and may impact investor confidence.
• No Employees: The company reports zero employees, implying potential operational limitations or reliance on outsourced services, which could affect business sustainability.

3. Positive Indicators:

• Positive and Growing Net Current Assets: Net current assets increased from £551 in 2021 to £6,578 in 2024, indicating improving short-term financial health and ability to meet liabilities.
• Strong Cash Position: Cash at bank rose from £1,434 in 2021 to £9,262 in 2024, supporting liquidity and operational flexibility.
• Compliance and Timely Filing: All statutory filings are up to date, indicating good governance and regulatory adherence.
• Stable Ownership and Management: The two directors hold equal shares and voting rights, suggesting clear control and stable management.

4. Due Diligence Notes:

• Review nature and terms of directors’ loans to assess repayment risk and impact on liquidity.
• Obtain detailed profit and loss information (not filed due to exemption) to understand revenue streams, profitability, and cost structure.
• Investigate operational model given no employees reported—clarify outsourcing arrangements or director involvement in day-to-day operations.
• Confirm whether the company’s SIC code (82301 - Activities of exhibition and fair organisers) aligns with current business activities and market positioning.
• Assess any contingent liabilities or off-balance-sheet commitments not disclosed in summary accounts.