Company Number: 13645989

Analysis Date: 2025-07-20 13:49 UTC

1. Risk Rating: LOW
   FM STAR SERVICE LTD demonstrates a sound financial position with positive net current assets, consistent net assets over recent years, and no overdue filings. The company maintains a clean compliance record and exhibits stable operational scale as a micro-entity.

2. Key Concerns:

• Director's Advances: The director’s loan account shows an outstanding credit balance to the director (£333 in 2024, previously £595), indicating some level of director financing that requires monitoring for potential cash flow impact.
• Declining Current Assets: Current assets decreased from £82,647 in 2023 to £59,207 in 2024, which may warrant inquiry into liquidity management or operational cash flow.
• Limited Financial Disclosure: As a micro-entity, the company files minimal financial details, restricting deeper analysis of profitability, cash flow trends, or contingent liabilities.

3. Positive Indicators:

• Strong Working Capital: Net current assets remain robust (£43,031 in 2024), suggesting the company can meet short-term obligations comfortably.
• Consistent Net Assets: The company’s equity remains stable around £58-59k over the last two years, indicating no significant erosion of shareholder value.
• Compliance and Governance: All statutory filings are up to date with no overdue accounts or confirmation statements; the sole director holds full share ownership and is actively engaged.

4. Due Diligence Notes:

• Review director loan account terms and repayment plans to assess impact on liquidity and potential related party risks.
• Obtain management accounts or cash flow statements to verify ongoing operational cash generation and liquidity beyond balance sheet snapshots.
• Confirm absence of contingent liabilities or off-balance sheet commitments not disclosed in micro-entity accounts.
• Assess market position and client base within the SIC code 46160 (agents in sale of textiles and related goods) to understand sustainability and revenue drivers.