Company Number: 14155583

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Francisco Partners Consulting Ltd shows a positive net asset position with improving net current assets, indicating better short-term financial health. However, the company is relatively young (incorporated in 2022) and currently operates within a group structure, relying on financial support from its parent. The significant reduction in debtor balances and creditors owed to group undertakings between 2022 and 2023 suggests a restructuring of intercompany balances, which requires ongoing monitoring. The absence of an audit and reliance on intercompany turnover under a cost-plus basis imply that external revenue generation and independent cash flow strength are limited. Credit approval is recommended with conditions including continued parent support and regular review of debtor collection and cash flow.

2. Financial Strength:
   The company’s net assets increased from £45,267 in 2022 to £146,544 in 2023, driven primarily by a reduction in current liabilities from £775,939 to £293,708 and a decrease in debtors from £634,924 to £253,217. Cash balances remained steady at approximately £187,000. The balance sheet shows no long-term liabilities, indicating low leverage. Shareholders’ funds reflect retained earnings growth. However, the creditor profile includes significant tax and social security obligations, which should be tracked for timely settlement. Overall, the balance sheet portrays a small but improving financial position with modest equity and manageable liabilities.

3. Cash Flow Assessment:
   Cash holdings are stable, and net current assets improved to £146,544, suggesting improved liquidity. The reduction in amounts owed by group undertakings and the elimination of amounts owed to group undertakings as creditors indicate changes in intercompany financial arrangements, which could affect cash inflows/outflows. The company’s cash flow depends heavily on the parent company’s financial support, as confirmed in the going concern note. The lack of audit and reliance on intercompany revenues (cost plus 9%) means independent cash generation is limited, so liquidity risk is moderated by the parent company’s backing. Working capital appears adequate for current operations but should be monitored closely.

4. Monitoring Points:

• Continued financial support from the parent company, as this underpins going concern and liquidity.
• Collection of debtors, especially intercompany balances, to avoid cash flow strain.
• Settlement of tax and social security liabilities, which represent a significant portion of current liabilities.
• Any changes in intercompany agreements impacting turnover recognition and cash inflows.
• Expansion of independent revenue streams beyond intercompany services for greater financial resilience.
• Timely filing of accounts and confirmation statements to ensure compliance and transparency.