FRACTAL OPUS LTD

Executive Summary

Fractal Opus Ltd demonstrates a high risk profile driven by persistent negative net assets and substantial working capital deficits, signaling solvency concerns. While compliance obligations are currently met and ownership is transparent, the company’s operational sustainability is uncertain given its financial losses and limited management capacity. Further due diligence on revenue generation and cash flow management is advised before considering investment.

FRACTAL OPUS LTD - Analysis Report

Company Number: 14040875

Analysis Date: 2025-07-29 14:43 UTC

1. Risk Rating: HIGH
   Justification: The company exhibits significant net liabilities and negative working capital, with no evidence of profitability or positive cash flows. The shareholder funds are deeply negative and increasing in deficit year-on-year, indicating ongoing losses. This financial profile suggests a high risk of insolvency.

2. Key Concerns:

• Solvency and Capital Deficiency: Net liabilities increased from approximately £6,300 in 2024 to nearly £8,000 in 2025, indicating worsening financial health and insufficient equity capital to cover liabilities.
• Liquidity Risk: Current liabilities (£8,539) far exceed current assets (£382), resulting in a substantial working capital deficit (-£8,157). Cash reserves are minimal and declining, which raises concerns about the company’s ability to meet short-term obligations.
• Operational Sustainability: The company has only one director, who is a student, and appears to have limited operational capacity. The absence of turnover or profitability data in the accounts, combined with the ongoing losses reflected in retained earnings, suggests the business may not be generating sustainable revenue.

3. Positive Indicators:

• Compliance: The company’s statutory filings (accounts and confirmation statement) are up to date with no overdue filings or penalties noted.
• Clear Ownership and Control: The sole director and 75-100% shareholder is identified, providing transparency over control.
• No Indication of Insolvency Proceedings: The company remains active and is not currently in liquidation, administration, or receivership.

4. Due Diligence Notes:

• Investigate the company’s revenue streams and customer contracts to assess whether the business model can become sustainable.
• Review cash flow forecasts and management plans to address the significant working capital deficit.
• Confirm whether the director’s limited business experience as a student might impact operational stability and governance.
• Assess any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Verify if the company is receiving financial support from shareholders or related parties to fund ongoing operations.