FLO EXPRESS LOGISTICS LIMITED

Executive Summary

FLO EXPRESS LOGISTICS LIMITED maintains stable equity and assets but faces liquidity challenges evidenced by negative working capital. While solvent and operational, the company should focus on improving cash flow management to strengthen its financial resilience. With careful financial planning and operational controls, its outlook can improve from cautious to healthy.

FLO EXPRESS LOGISTICS LIMITED - Analysis Report

Company Number: 13621229

Analysis Date: 2025-07-20 16:29 UTC

Financial Health Assessment of FLO EXPRESS LOGISTICS LIMITED

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1. Financial Health Score: C

Explanation:
The company shows modest net assets and positive equity, which are good signs. However, persistent negative net current assets (working capital deficit) indicate liquidity stress. The company is solvent but has symptoms of financial strain in meeting short-term obligations, warranting a cautious rating.

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2. Key Vital Signs

Metric	2024 Value (£)	Interpretation
Fixed Assets	8,116	Modest investment in long-term assets; stable but slightly declining from previous year.
Current Assets	4,040	Increased from prior year, showing some improvement in liquid resources.
Current Liabilities	7,889	Slightly decreased, but still high relative to current assets; short-term debt remains heavy.
Net Current Assets (Working Capital)	-3,849	Negative, indicating the company may struggle to cover short-term debts with current assets.
Net Assets (Equity)	4,267	Positive and stable, showing overall assets exceed liabilities, which is a healthy sign.
Shareholders’ Funds	4,267	Matches net assets, confirming equity capital cushions the business.
Average Number of Employees	1	Very small workforce, consistent with micro-entity status.

Interpretation of Vital Signs:
The negative working capital is a symptom of liquidity stress—akin to a patient having low blood pressure despite a stable heart rate. The company maintains a solid asset base but needs to improve its cash flow and short-term financial management to avoid distress.

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3. Diagnosis

FLO EXPRESS LOGISTICS LIMITED is a micro-entity operating in freight transport by road. The company shows stable equity and asset levels but persistent short-term liquidity weakness (negative working capital). The slight increase in current assets in 2024 is a positive symptom, suggesting some improvement in cash or receivables. However, current liabilities remain high relative to liquid assets, indicating a potential risk that the company may face difficulty in meeting immediate obligations without additional financing or improved cash collections.

The business is young (incorporated in 2021) and has undergone a recent name change, which might indicate strategic repositioning or restructuring. The control structure is concentrated, with the main director owning 75-100% shares and voting rights, suggesting streamlined decision-making but also concentration risk.

Overall, the company is solvent and not in liquidation or distress but shows signs of financial strain in managing day-to-day liquidity—similar to a patient with stable but low energy levels, requiring monitoring and lifestyle adjustments.

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4. Recommendations

1. Improve Working Capital Management:

   • Accelerate receivables collection cycles and negotiate extended payment terms with suppliers to ease liquidity pressure.
   • Maintain adequate cash reserves or access to short-term credit facilities as a buffer against unexpected cash flow fluctuations.

2. Monitor Expense Control:

   • Keep fixed and operating costs under tight control, especially given the small scale of operations and limited workforce.

3. Financial Planning and Forecasting:

   • Develop short and medium-term cash flow forecasts to anticipate liquidity needs and avoid last-minute financial stress.

4. Consider Strategic Growth or Diversification:

   • Explore opportunities to increase revenue streams or expand client base to improve cash inflows and asset utilisation.

5. Maintain Robust Corporate Governance:

   • Ensure clear documentation and adherence to compliance, especially with director changes and shareholder control to maintain transparency and trust.

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