Company Number: 13816876

Analysis Date: 2025-07-29 14:37 UTC

1. Credit Opinion: DECLINE
   Frankieroos Limited displays weak financial health with net current assets essentially depleted at £33 as of 31 December 2023, down significantly from £7,588 the previous year. The company’s liabilities have surged sharply, eroding its working capital and equity base, indicating poor liquidity and potential difficulties in meeting short-term obligations. The micro-entity status and limited financial disclosures further restrict insight into operational cash flows and profitability. Management changes within a short period may also suggest instability. Given these factors, the company currently lacks the financial strength and resilience to support additional credit without significant risk.

2. Financial Strength:
   The balance sheet reveals a fragile position. Current liabilities have increased substantially from £3,770 to £53,143 in one year, while current assets rose moderately from £11,358 to £51,976. However, this increase in current assets appears insufficient to offset the rise in short-term creditors, resulting in virtually zero net current assets and net assets of only £33. Shareholders’ funds have diminished drastically, eroding the company’s equity cushion. The absence of fixed assets and low capitalisation (£100 share capital) further weaken the financial foundation.

3. Cash Flow Assessment:
   The company likely faces liquidity pressures due to the disproportionate rise in creditors relative to current assets. Net working capital is effectively nil, indicating minimal buffer to cover immediate payables. Although the directors report good sales growth and profitability, there is no disclosed cash flow statement to confirm positive operational cash generation. The increase in prepayments and accrued income (£1,200) is immaterial relative to liabilities. Without evidence of strong cash inflows or access to external funding, the company’s ability to service debt or absorb financial shocks is questionable.

4. Monitoring Points:

• Track net current assets and working capital trends closely for signs of improvement or further deterioration.
• Monitor director changes and their impact on governance and strategic decisions.
• Watch for updated filings, particularly cash flow statements or notes explaining the jump in liabilities.
• Review payment patterns to suppliers and creditors for signs of delayed or missed payments.
• Assess any changes in share capital or funding injections that might bolster equity.