FLIGHT STORY LIMITED

Executive Summary

Flight Story Limited is currently facing high financial risk characterized by a significant liquidity shortfall and negative equity at year-end 2023, despite maintaining compliance with filing obligations. The company’s financial position has deteriorated notably from previous years, driven largely by increased liabilities and investment impairments. Further due diligence is required to evaluate asset recoverability and management’s mitigation strategies to restore financial stability.

FLIGHT STORY LIMITED - Analysis Report

Company Number: 13441974

Analysis Date: 2025-07-20 16:18 UTC

1. Risk Rating: HIGH
   The company exhibits significant solvency and liquidity concerns, with net current liabilities of approximately £1.17 million and negative shareholders’ funds of around £273k as at 31 December 2023. This deterioration from a positive net asset position in prior years indicates financial stress.

2. Key Concerns:

• Liquidity Deficit: Current liabilities (£1.79M) substantially exceed current assets (£621k), resulting in a large working capital deficit that may impair the company’s ability to meet short-term obligations.
• Negative Equity Position: Shareholders’ funds turned negative in 2023, signaling accumulated losses or impairment that erode the company’s capital base.
• Volatile Investment Valuation: Fixed asset investments increased significantly by additions but suffered a large valuation decrease (£652,965), indicating potential impairment or write-down risks impacting asset quality.

3. Positive Indicators:

• No Filing or Compliance Issues: Accounts and confirmation statements are filed on time with no overdue filings noted, suggesting sound regulatory compliance and governance.
• Revenue Generation Model: The company has a defined turnover recognition policy linked to social media marketing services, implying an operational business model with ongoing service delivery.
• Growing Workforce: Average employees increased from 13 to 20 in 2023, which may reflect business expansion or scaling efforts despite financial challenges.

4. Due Diligence Notes:

• Investigate the nature and recoverability of the large investment additions and subsequent valuation losses to understand asset quality and impairment risks.
• Review detailed cash flow statements and creditor aging to assess immediate liquidity pressures and creditor terms.
• Confirm the impact of related party transactions, particularly amounts owed by group undertakings, on liquidity and financial stability.
• Assess management plans to address the working capital deficit and negative equity, including capital raising or restructuring efforts.
• Verify the financial performance trends and profitability metrics not disclosed in the summary to better understand operational sustainability.