FOBBING VILLAGE PRE-SCHOOL LIMITED

Executive Summary

FOBBING VILLAGE PRE-SCHOOL LIMITED displays significant liquidity and solvency challenges with persistent negative working capital and historically negative equity, although recent results show modest improvement. The lack of detailed profitability disclosure restricts comprehensive operational assessment. Investors should proceed with caution and conduct further due diligence to clarify ongoing financial health and operational sustainability.

FOBBING VILLAGE PRE-SCHOOL LIMITED - Analysis Report

Company Number: 12766344

Analysis Date: 2025-07-20 19:14 UTC

1. Risk Rating: HIGH
   FOBBING VILLAGE PRE-SCHOOL LIMITED exhibits a high risk profile primarily due to persistent negative net current assets indicating liquidity shortfalls and a history of negative shareholders' funds until the most recent year. The company’s ability to meet short-term obligations is questionable despite a recent improvement in equity.

2. Key Concerns:

• Negative Net Current Assets: The company has consistently reported net current liabilities (e.g., -£10,503 in 2024, worsening from -£18,521 in 2023), signaling ongoing liquidity pressure and potential difficulty in meeting short-term debts.
• Historic Negative Shareholders’ Funds: Prior to 2024, shareholders’ funds were negative (e.g., -£3,723 in 2023), which raises concerns about capital adequacy and financial sustainability over prior years. Although 2024 shows a positive £1,670, this is a modest buffer and may not be sufficient to absorb shocks.
• Limited Financial Disclosure: The company has filed under the small companies regime and omitted the profit and loss account from filings, limiting transparency into profitability, cash flow generation, and operational performance trends.

3. Positive Indicators:

• Recent Equity Improvement: The movement from negative to positive shareholders’ funds in 2024 suggests some operational or financial improvements.
• Cash Position: Cash balances increased from £8,383 in 2023 to £13,519 in 2024, indicating better cash management or inflows in the current year.
• No Filing or Regulatory Issues: The company is active, up-to-date with accounts and confirmation statement filings, with no overdue documents or liquidation status, which supports compliance and governance discipline.

4. Due Diligence Notes:

• Obtain management accounts or detailed P&L data to assess ongoing profitability and cash flow trends since the omission of profit and loss accounts limits insight.
• Investigate the nature of current liabilities (£24,159 in 2024) to determine if these are trade payables, tax obligations, or accruals, and assess payment terms and creditor relationships.
• Clarify the source of the positive turnaround in shareholders’ funds—whether from capital injection, profits, asset disposals, or accounting reclassifications.
• Review directors’ commentary or strategic report (if available) for business outlook, risk management practices, and any contingent liabilities.
• Evaluate the sustainability of goodwill and intangible assets (£7,000) on the balance sheet, including impairment testing, given the nature of the business and limited asset base.