FMCGEXEC LIMITED
Company number 04394176 · Monitor this company
This analysis was written by an AI from the company's public filings. It may contain errors or omissions and is not financial or professional advice.
Financial Health Assessment: FMCGEXEC LIMITED
1. Financial Health Score
Grade: B−
The company is fundamentally solvent and compliant, but its vital signs indicate a business that is stable rather than robust. Positive net assets and up-to-date filings are encouraging, yet liquidity is modest and heavily dependent on money owed by customers rather than cash in the bank. Because the abbreviated accounts do not disclose a profit and loss account, profitability cannot be verified from the public record, which tempers the assessment.
2. Key Vital Signs
| Metric | Latest Figure (2025) | Prior Year (2024) | Interpretation |
|---|---|---|---|
| Net assets | £45,946 | £42,404 | Solvency. Positive equity means the company owns more than it owes. Like a normal body temperature, this is a baseline sign of life. Equity rose modestly year on year. |
| Current ratio | 1.17 : 1 | 1.09 : 1 | Short-term liquidity. Current assets cover current liabilities by a narrow margin. Above 1.0 is reassuring, but there is little headroom if receipts are delayed. |
| Cash ratio | 0.35 : 1 | 0.40 : 1 | Immediate liquidity. Cash covers only about 35p for every £1 of immediate bills. The pulse is present but weak; the business relies on collecting debtors to pay suppliers and staff. |
| Working capital | £66,112 | £29,774 | Operating cushion. Positive and more than doubled, which is a healthy sign. It suggests the company can fund day-to-day operations without emergency borrowing. |
| Cash at bank | £137,731 | £130,749 | A reasonable cash buffer, but only about one-third of current liabilities. |
| Debtors (amounts owed by customers) | £320,624 | £225,953 | A large and growing portion of assets. This is the company’s main source of near-term cash, but it also represents credit risk if customers pay slowly or default. |
| Fixed assets | £93,637 | £9,989 | A significant increase, driven by new tangible asset additions. This signals investment in capacity, but also ties up capital. |
| Long-term creditors | £90,394 | £0 | New borrowing has appeared. This is not inherently alarming, but repayments will now call on future cash flow. |
| Filing compliance | Up to date | Up to date | Accounts and confirmation statement are current. No overdue filings, which is equivalent to keeping regular check-ups. |
Note: The company files under the small companies regime and the directors have elected not to disclose a profit and loss account. Consequently, revenue, gross profit, and operating profit are not visible in the public record.
3. Diagnosis
Overall condition: Stable, but under liquidity strain.
The company is not in distress. It is active, solvent, and meeting its statutory obligations. The balance sheet shows positive net assets that grew slightly during the year, and working capital has improved. The directors state in the accounts that they expect the company to continue operating for the foreseeable future (a going concern basis).
However, several symptoms warrant attention:
- Tight cash position. Cash covers only about a third of liabilities due within a year. The company’s “blood pressure” (current ratio) is adequate but not strong, meaning a delay in customer payments could create immediate pressure.
- Reliance on debtors. Customer debt has grown by roughly £95k, while cash grew by only about £7k. In the recruitment sector, it is common to pay workers before clients settle invoices, which stretches working capital. If debtor collection slows, the company may struggle to meet its £392k of short-term creditors.
- New long-term debt. The appearance of £90k in creditors due after more than one year coincides with a large rise in fixed assets. This suggests the asset purchase was partly financed by borrowing. Servicing that debt will reduce future cash availability.
- Opaque profitability. Without a published profit and loss account, it is impossible to confirm whether the company is genuinely profitable or whether the modest rise in equity reflects trading results, capital injections, or accounting reclassifications. The profit and loss reserve fell sharply while share capital rose, which merits closer internal review.
Underlying assessment: The business resembles a patient who is conscious and responsive but running on a thin margin. The vital signs are not critical, but there is little reserve capacity for shock.
4. Recommendations
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Strengthen cash reserves. Aim to build cash to cover at least 50% of current liabilities. Even a modest monthly surplus set aside would improve the cash ratio and reduce dependence on debtor receipts.
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Tighten credit control. With £320k owed by customers, review payment terms, invoice promptly, and chase overdue balances aggressively. Reducing debtor days would convert paper assets into spendable cash.
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Produce monthly management accounts. Because the public accounts omit the profit and loss statement, the board should prepare internal management accounts each month to monitor revenue, gross margin, and net profit. This will reveal whether the business is genuinely profitable or merely cash-flow positive due to timing.
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Plan debt servicing. Model the repayments on the new £90k long-term liability against expected cash flow. Ensure the funding matches the useful life of the assets purchased and does not starve operations of cash.
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Monitor provisions. Provisions for liabilities have increased materially (to £23,409). Verify these relate to known obligations such as tax or staff costs and that sufficient cash is ring-fenced to settle them.
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Maintain filing discipline. Continue to submit accounts and confirmation statements on time. Compliance is currently a strength and should be preserved.