FORM FIVE GROUP LIMITED

Executive Summary

Form Five Group Limited maintains a positive net asset position and complies with regulatory requirements, indicating reasonable solvency and operational compliance. However, a notable reduction in current assets and a recorded loss in the latest year introduce moderate liquidity and profitability concerns. Further review of underlying cash flows and management changes is advised to fully assess financial sustainability.

FORM FIVE GROUP LIMITED - Analysis Report

Company Number: 13192654

Analysis Date: 2025-07-29 17:29 UTC

1. Risk Rating: MEDIUM
   The company exhibits moderate financial stability with positive net assets and shareholders' funds but shows a recent decline in retained earnings and a reduction in current assets. The business is active and compliant with filings, but the decreased cash and debtors alongside a net loss suggests cautious monitoring.

2. Key Concerns:

• Declining retained earnings, indicating a loss of £22,038 in the last financial year, which may impact long-term profitability.
• Significant drop in current assets from £615,103 to £301,166 and cash from £256,559 to £168,170, potentially signaling liquidity pressure.
• Director turnover with one director resigning recently may affect operational continuity and governance stability.

3. Positive Indicators:

• Positive net current assets (£199,425) and net assets (£214,223) demonstrate the company currently has more short-term assets than liabilities, supporting solvency.
• Timely filing of accounts and confirmation statements with no overdue returns reflects good regulatory compliance.
• Shareholder funds remain strong at over £214k, supported by share premium and retained earnings despite the recent deficit.

4. Due Diligence Notes:

• Review detailed profit and loss accounts (not filed publicly due to small company exemption) to understand the nature and drivers of the recent loss.
• Investigate reasons for the significant decrease in trade debtors and current assets to assess potential cash flow risks.
• Assess the impact of the recent director resignation on management and strategic direction.
• Confirm the adequacy of provisions for liabilities, especially the deferred tax provision introduced in 2024.
• Evaluate any off-balance sheet liabilities or contingent liabilities not disclosed in the filed accounts.