FLJJ LTD

Executive Summary

FLJJ Ltd currently faces high financial risk, primarily due to persistent negative net assets and ongoing liquidity challenges. While compliance and governance appear sound, the company's ability to meet short-term and long-term obligations warrants close scrutiny. Prospective investors should seek detailed operational and cash flow information to better understand the sustainability of the business model and financial structure.

FLJJ LTD - Analysis Report

Company Number: 13263351

Analysis Date: 2025-07-20 18:05 UTC

1. Risk Rating: HIGH
   FLJJ Ltd exhibits significant solvency concerns with persistent net liabilities and negative shareholder funds that have worsened over the last two years. The company’s current liabilities exceed current assets by a substantial margin, indicating liquidity stress.

2. Key Concerns:

• Negative Net Assets and Shareholders’ Funds: The company reported net liabilities of £19,270 as of March 2025, deteriorating from £16,728 the previous year, signaling accumulated losses eroding equity.
• Negative Net Current Assets: The working capital position is negative (£-17,720), indicating potential difficulty in meeting short-term obligations as current liabilities are nearly double current assets.
• Long-term Creditors and Debt Levels: Creditors falling due after more than one year remain significant (£32,022), suggesting reliance on extended credit or loans that may pressure cash flows if not managed prudently.

3. Positive Indicators:

• Filing Compliance: The company is up to date with both its accounts and confirmation statement filings, which reduces regulatory risk.
• Stable Management: Directors have been in place since incorporation with no public disqualification records, indicating stable governance.
• Micro-entity Status: The company benefits from simplified reporting and audit exemptions, which may reduce administrative burden and costs.

4. Due Diligence Notes:

• Investigate the nature and terms of long-term liabilities to assess refinancing risk or covenant breaches.
• Review cash flow statements (not provided) to understand operational cash generation or consumption patterns.
• Understand the business model and revenue streams given the SIC codes (business support services and specialised design) to evaluate operational sustainability in the context of sustained losses.
• Clarify whether the negative equity is due to initial setup costs, investments, or recurring operational losses.
• Assess any related party transactions or guarantees from significant controllers or directors that could affect financial stability.