Company Number: 04436808

Analysis Date: 2025-08-07 20:02 UTC

1. Risk Rating:
MEDIUM

Justification:
Fletcher Access Ltd maintains positive net assets and shareholders' funds (£498,648 as of 31 May 2024) and has been compliant with filing requirements, indicating regulatory good standing and operational continuity. However, persistent negative net current assets over multiple years (e.g., -£8,083 in 2024) and relatively high current liabilities compared to current assets raise liquidity concerns, limiting its short-term financial flexibility.

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2. Key Concerns:

• Negative Working Capital: The company has consistently exhibited negative net current assets for several years, indicating potential liquidity strain in meeting short-term obligations. Although improved from previous years, the current position (net current liabilities of £8,083) remains a concern.
• High Use of Finance Lease Obligations: There is a significant increase in finance lease liabilities within current (£44,167) and non-current (£66,250) liabilities, which may create fixed repayment commitments affecting cash flow management.
• Director Loans/Oweings: Related party transactions reveal material amounts due to directors (£108,598 to Mr. A J Fletcher), suggesting reliance on director funding that may not be sustainable or market competitive.

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3. Positive Indicators:

• Consistent Net Asset Growth: The company’s net assets and shareholders’ funds have increased substantially over recent years, moving from £55,780 in 2015 to £498,648 in 2024, reflecting retained earnings accumulation and asset growth.
• Cash Balance Improvement: Cash reserves have increased year-over-year (from £157,144 in 2023 to £176,659 in 2024), which helps liquidity and operational cash flow stability.
• Compliance and Timeliness: The company is active, not in liquidation or administration, with no overdue filings for accounts or confirmation statements, evidencing good governance and compliance with corporate regulations.

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4. Due Diligence Notes:

• Examine Lease Agreements: Review the terms, duration, and impact of finance lease obligations to understand future cash flow commitments and risk of lease defaults.
• Assess Working Capital Management: Analyze how management intends to address persistent negative working capital concerns, including any plans to reduce short-term liabilities or increase liquid assets.
• Related Party Debt: Investigate the director loans/amounts owed for repayment terms, interest rates (if any), and potential impacts on operational independence and creditors’ priority.
• Profitability and Cash Flow Trends: With limited detail on turnover and profitability in the provided data, further investigation into the company’s income trends and cash flow statements would be necessary to assess operational sustainability.
• Asset Valuation and Depreciation: Confirm the fair valuation and condition of tangible fixed assets, especially given the material values recorded (£583,738 net), to ensure assets support business operations and collateral capacity.

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