FRAGORUM FIELDS FREEHOLD LIMITED

Executive Summary

Fragorum Fields Freehold Limited is financially weak with sustained negative net assets and significant current liabilities exceeding liquid assets. The company's minimal equity and lack of working capital raise serious concerns about its ability to meet credit obligations. Based on available data, credit approval is not recommended without substantial financial improvement or support.

FRAGORUM FIELDS FREEHOLD LIMITED - Analysis Report

Company Number: 13438470

Analysis Date: 2025-07-29 16:59 UTC

1. Credit Opinion: DECLINE
   Fragorum Fields Freehold Limited exhibits persistent negative net assets and net current liabilities over multiple years, indicating ongoing financial distress and insufficient working capital. The company’s micro-entity status with minimal fixed assets and negligible current assets relative to liabilities suggests weak financial resilience. Without evidence of profitability, cash inflows, or capital injection, the ability to service debt or meet credit obligations appears doubtful. The management structure shows continuity but no clear indicators of corrective financial strategy or turnaround.

2. Financial Strength:
   The balance sheet reflects cumulative net liabilities increasing from £-354 in 2021 to £-930 in 2024. Fixed assets remain minimal (£2,943) and stagnant, while current liabilities exceed current assets by nearly £3,900, creating a liquidity deficit. Share capital is nominal (£2), and shareholders’ funds are negative, highlighting poor equity backing. No retained earnings or reserves are reported, implying no reinvested profits to buffer losses.

3. Cash Flow Assessment:
   Current assets at £2 are negligible and unlikely to generate meaningful cash inflows. Recurrent current liabilities in the £3,500 to £3,875 range point to significant short-term obligations that cannot be met from liquid resources, indicating chronic working capital shortages. The absence of reported profit and loss data restricts detailed cash flow analysis, but the balance sheet alone signals liquidity risk.

4. Monitoring Points:

• Monitor any capital injections or equity restructuring to improve net asset position.
• Track changes in current liabilities and efforts to reduce short-term debt.
• Review subsequent filing of profit and loss accounts for signs of operational improvement.
• Watch for director or shareholder actions addressing solvency issues, including possible restructuring or winding up.
• Observe compliance with filing deadlines as a proxy for governance quality.