FOURTH LIMITED
Company number 03887115 · 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.
CREDIT ASSESSMENT REPORT
FOURTH LIMITED
Company No. 03887115 | Software Development (SIC 62012) Assessment Date: Based on latest available data
1. CREDIT OPINION: CONDITIONAL APPROVE
Reasoning: Fourth Limited operates in the hospitality technology sector with a strong niche position, evidenced by its long operational history since 1999 and corporate ownership structure. The company demonstrates established market presence, but the assessment is constrained by the absence of detailed financial figures in the available data. The conditional approval reflects the need for full financial disclosure before final commitment. The company's corporate parent (Fourth Holdings U.K. Limited) owning >75% suggests group support, which is a positive factor; however, the high director turnover in 2026 warrants closer scrutiny.
2. FINANCIAL STRENGTH
Balance Sheet Health
| Metric | Assessment |
|---|---|
| Share Capital | £1,432,162.99 — Substantial issued capital indicates significant equity investment |
| Company Category | Full accounts filed — suggests medium/large classification with robust reporting |
| Filing Compliance | Up to date (accounts due 2027-09-30; last filed 2025-12-31) — good governance indicator |
Key Observations
- Capitalisation: The £1.43M share capital provides a meaningful equity cushion, though this represents nominal value only; the actual net asset position cannot be determined without the balance sheet.
- Group Structure: Ownership by Fourth Holdings U.K. Limited (>75%) implies access to group resources and potential parental support in distress scenarios.
- Historical Stability: Operating since 1999 (26 years) demonstrates business model resilience through multiple economic cycles.
3. CASH FLOW ASSESSMENT
Liquidity & Working Capital
- Data Limitation: Current assets, liabilities, and cash flow figures are not available in the provided extract. This is a material gap for a full credit assessment.
- Business Model: As a software development company serving the hospitality sector, the business likely operates with recurring revenue streams (SaaS model implied by website description), which typically supports predictable cash flow.
- Receivables Risk: Software companies often carry significant trade debtors; the quality of the debtor book requires verification.
Working Capital Considerations
- The hospitality technology sector can experience seasonality tied to client trading patterns.
- Inventory is likely minimal (software/intangible focus), reducing working capital strain.
- Forward-looking cash flow depends on client retention and new licence sales.
4. MONITORING POINTS
| Risk Factor | Concern Level | Action |
|---|---|---|
| Director Turnover (2026) | Medium | Two directors resigned (Apr & Oct 2026); verify no disputes or governance issues |
| Financial Statement Access | High | Request latest full accounts (FY2025) and management accounts (interim) |
| Parent Company Dependency | Medium | Assess Fourth Holdings' financial health; group-wide distress could cascade |
| Sector Concentration | Medium | Hospitality sector exposure — monitor for downturns affecting client spending |
| Foreign Director Representation | Low | US and Danish directors; consider currency/expatriation risk, though operational impact is minimal |
| PSC Structure | Low | Dual PSC entities (Fourth Holdings U.K. and Fourth Holdings Limited) — confirm no conflicting control |
EXECUTIVE SUMMARY
Fourth Limited presents as a well-established hospitality technology provider with strong capitalisation and corporate backing, but the absence of detailed financial statements prevents a definitive credit opinion. The company demonstrates good filing compliance and operational longevity, suggesting creditworthiness, yet the recent director resignations and sector-specific risks warrant conditional terms. Recommend approving subject to receipt and satisfactory review of full FY2025 accounts and interim management accounts, with covenants tied to minimum liquidity and debtor days.