Company Number: 14506291

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

1. Risk Rating: MEDIUM
   FLOLEA LTD is a recently incorporated micro-entity with modest net assets and no fixed assets. The presence of long-term liabilities (£7,500) against relatively small current assets (£26,010) indicates some solvency risk, although the net asset position is positive (£11,010). Limited financial history and size increase uncertainty in assessing the business’s stability.

2. Key Concerns:

• Long-term liabilities exceeding net current assets: The company carries £7,500 in creditors due after more than one year with only £26,010 in current assets and no fixed assets, which could pressure solvency if cash flows are insufficient.
• Limited asset base and scale: The absence of fixed assets and small net asset value may limit operational resilience and borrowing capacity.
• Recent director resignation: One of two directors resigned in early 2024, which might affect governance or operational continuity, especially in a small company.

3. Positive Indicators:

• Current filings are up to date: Both accounts and confirmation statement have been filed on time, indicating good compliance and corporate governance practices.
• Positive net assets and shareholder funds: Despite the small size, the company shows positive equity, a basic indicator of solvency.
• Operating in a defined niche: The company operates in wholesale food products (olive oil and related items), supported by an active website and marketing presence, suggesting a focused business model.

4. Due Diligence Notes:

• Verify the nature and terms of the £7,500 long-term liabilities to assess repayment risk and impact on cash flow.
• Review cash flow statements (if available) or bank confirmations to understand liquidity position and working capital management.
• Investigate reasons for the director resignation and whether the remaining director has adequate capacity and expertise to manage the company.
• Examine any trading or sales performance data since incorporation to assess operational sustainability and growth prospects.
• Confirm whether there are any contingent liabilities or off-balance-sheet risks not disclosed in the micro-entity accounts.