Company Number: 13839807

Analysis Date: 2025-07-20 11:24 UTC

1. Risk Rating: MEDIUM
   While Fransquared Limited maintains positive net current assets and shareholders' funds, the significant decline in net assets from £7,868 at incorporation to £857 as of March 2025 signals a material erosion of capital that warrants caution. The limited scale of operations and micro-entity status restrict the scope of financial transparency, increasing risk considerations.

2. Key Concerns:

• Capital Erosion: Net assets have decreased substantially over a three-year period, indicating potential profitability or cash flow challenges.
• Limited Asset Base: Fixed assets dropped to zero by March 2025; reliance on minimal current assets may impact operational resilience.
• Small Scale and Limited Financial Disclosure: As a micro-entity, the company benefits from reduced filing requirements, limiting insight into profitability, cash flows, and contingent liabilities.

3. Positive Indicators:

• Compliance with Filing Requirements: No overdue accounts or confirmation statements, suggesting good regulatory compliance.
• Positive Net Current Assets: Despite reductions, the company maintains positive working capital (£857), indicating it can currently meet short-term obligations.
• Stable Management: The two directors have been consistent since incorporation, and the majority shareholder retains control, which may support strategic continuity.

4. Due Diligence Notes:

• Review the detailed profit and loss accounts (currently unavailable) to assess operational profitability and cash flow trends.
• Investigate reasons behind the sharp decline in net assets and fixed assets disposal or depreciation.
• Confirm whether the company has any significant liabilities or contingent risks not disclosed under micro-entity reporting.
• Assess the nature of contracts or client base in management consultancy to evaluate business sustainability.
• Conduct background checks on directors and shareholders for any regulatory or reputational risks.