Company Number: 13202717

Analysis Date: 2025-07-29 20:07 UTC

1. Credit Opinion: DECLINE
   Formulation Properties Ltd shows persistent negative net current assets and net liabilities over multiple years, indicating a weak liquidity position. The company is micro-sized with no employees and minimal fixed and current assets relative to its current liabilities (£22,603 in 2024). This suggests limited ability to service short-term obligations or new credit facilities. Without evidence of positive cash flow or operational revenues, the risk of default is elevated. Management control is concentrated but there is no indication of financial strength or reserves to mitigate risk.

2. Financial Strength: Weak
   The balance sheet reveals net liabilities of approximately £17,897 in 2024, worsening slightly from £17,268 in prior years. Fixed assets are negligible (£1,163), and current assets are insufficient to cover current liabilities, resulting in negative net current assets (-£19,060). Shareholders’ funds mirror net liabilities, indicating accumulated losses or undercapitalization. The company’s financial base is fragile with no visible retained earnings or liquidity buffers.

3. Cash Flow Assessment: Negative/Insufficient Liquidity
   The absence of employees and very low current assets implies limited operational activity and cash inflows. Current liabilities exceeding current assets by a large margin point to strained working capital. Without additional data on cash flow from operations or financing, it is reasonable to conclude that liquidity is inadequate to meet immediate obligations. This raises concerns over the company’s capacity to repay debt or sustain operations.

4. Monitoring Points:

• Monitor quarterly cash flow and working capital trends.
• Review any changes in current liabilities and asset composition.
• Track updates to management strategy or capital injections that may improve liquidity.
• Observe any late filings or signs of financial distress in future accounts or returns.
• Watch for changes in ownership or director conduct, given concentrated control.