FRAME AND FORM LIMITED
Executive Summary
FRAME AND FORM LIMITED shows a declining financial position with persistent negative net assets and working capital deficits, indicating weak creditworthiness. The company’s minimal fixed assets and lack of employees reduce operational resilience, raising significant concerns about its ability to meet short-term obligations. Credit approval is not recommended without substantial financial improvement or support.
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This analysis is opinion only and should not be interpreted as financial advice.
FRAME AND FORM LIMITED - Analysis Report
Credit Opinion: DECLINE
FRAME AND FORM LIMITED exhibits significant financial distress. The company's net liabilities have more than doubled over three years, reaching a negative net asset position of £14,199 as of 31 March 2024. The persistent negative net current assets indicate a working capital deficit, suggesting an inability to meet short-term obligations from available current assets. Given the absence of employees and minimal fixed assets, the business lacks operational scale and resilience. The deterioration in financial position with no signs of recovery raises concerns about creditworthiness and repayment capacity. Without evidence of imminent capital injection or turnaround, extending credit would be high risk.Financial Strength:
The balance sheet reflects weak financial health. Fixed assets remain negligible (£1,471), representing minimal long-term investments. Current liabilities exceed current assets by £15,670, highlighting liquidity problems and reliance on external funding or director support. Negative shareholders’ funds signal accumulated losses and erosion of equity capital. The company’s micro-entity status and no audit exemption provide limited transparency, but the trend of increasing net liabilities is concerning. The single director and 100% shareholder control imply concentrated management but also limited financial backing.Cash Flow Assessment:
The company’s working capital deficit indicates poor liquidity and potential cash flow constraints. Current assets dropped substantially from £15,800 in 2022 to £6,513 in 2024, while current liabilities have remained high. This suggests either a decline in receivables/cash balances or increased short-term payables. Lack of employees and minimal operational infrastructure may limit cash outflows but also imply limited revenue generation. Without cash flow forecasts or profit and loss data, the outlook remains weak, with the high likelihood of cash shortfalls to cover immediate liabilities.Monitoring Points:
- Net current asset position: Watch for improvement or worsening of working capital
- Net asset trend: Monitor for stabilization or further erosion of equity
- Director’s financial support: Any injections or guarantees to shore up finances
- Filing compliance: Continued timely submission of accounts and confirmations
- Operational developments: Changes in business activity or expansion plans that may affect financials
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