FRANK ELLISON LIMITED

Executive Summary

Frank Ellison Limited is a young but compliant private limited company showing improving financial health with positive net assets and modest liquidity. Its reliance on directors’ loans as a key liability and limited trading history warrant cautious credit approval with ongoing monitoring of working capital and cash flow. Overall, the company demonstrates potential for stable creditworthiness with prudent oversight.

FRANK ELLISON LIMITED - Analysis Report

Company Number: 14527564

Analysis Date: 2025-07-20 13:51 UTC

1. Credit Opinion: APPROVE with caution. Frank Ellison Limited is a recently incorporated private limited company (incorporated December 2022) engaged in the repair and manufacture of fabricated metal products. The company has filed up-to-date accounts without overdue returns or filings, indicating compliance and operational transparency. Financially, the company shows positive net assets and modest working capital as of the latest 2024 accounts, but its current liabilities remain high relative to current assets, largely due to directors’ loan accounts. The company does not have an audit exemption breach, and management appears stable with three directors holding combined control. Given the early stage of business and limited financial history, credit approval is recommended but with monitoring and possibly lower exposure limits.

2. Financial Strength: The balance sheet as at 31 December 2024 shows fixed assets of £23,952 (net of depreciation), current assets of £96,671, and current liabilities of £92,839. The company improved its net current assets from a negative £9,502 in 2023 to a positive £3,832 in 2024, indicating better short-term liquidity management. Net assets and shareholders’ funds increased from £21,048 to £27,784, demonstrating capital growth and retained earnings accumulation. The large portion of current liabilities (£62,635) is due to directors’ loan accounts, which may represent internal funding rather than external creditor risk. Overall, the company has a modest but improving financial base with a stable equity position.

3. Cash Flow Assessment: Cash at bank and in hand stands at £62,862, a slight reduction from £67,960 in the previous year, indicating some cash outflow but still a reasonable liquidity buffer. Debtors are steady at £31,069, with stock levels stable around £2,740. Current liabilities have decreased from £111,211 to £92,839, supporting improved liquidity. The positive net current assets figure and stable cash position indicate the company can meet short-term obligations but should be monitored for cash flow timing, especially given the high directors’ loan accounts which could be called in or repaid irregularly.

4. Monitoring Points:

• Directors’ loan account balance: This remains a significant liability and should be monitored for repayment terms and potential impact on liquidity.
• Working capital trends: Watch for changes in current assets versus current liabilities to avoid liquidity stress.
• Profitability and cash generation: Given the company is early-stage, consistent profit and cash flow improvements are crucial.
• Management continuity and governance: The directors hold substantial control; any changes or adverse conduct should be tracked.
• Debtor aging and stock turnover: Ensure receivables remain collectible and inventory does not become obsolete.