Company Number: 13230448

Analysis Date: 2025-07-29 15:56 UTC

1. Credit Opinion: DECLINE
   FRASER EST LTD exhibits a weak financial position with significant negative shareholders’ funds (£-354,598 as at February 2024) and persistent net current liabilities, indicating a working capital deficit. The company’s liabilities exceeding its assets raise concerns about its ability to meet short-term obligations and service debt. Despite being active and having tangible fixed assets, the company’s negative net assets and deteriorating equity position imply financial distress and limited headroom for additional borrowing without substantial improvements.

2. Financial Strength:
   The company holds substantial fixed assets (£1.42 million) primarily in real estate, consistent with its SIC codes related to property letting and trading. However, these assets are heavily leveraged with long-term creditors (£1.51 million) surpassing the total tangible assets net of current liabilities, resulting in a negative net asset position. The negative shareholders’ funds indicate accumulated losses or financing through debt rather than equity, weakening the company’s solvency and balance sheet robustness.

3. Cash Flow Assessment:
   Current assets stand at only £81,050, including cash of £76,280, but current liabilities total £1.51 million, resulting in a net current liability of £260,409. This working capital shortfall signals liquidity risk and potential difficulty in funding day-to-day operations or servicing short-term debts. The company’s cash buffer is minimal relative to liabilities due within a year, suggesting potential cash flow pressure without additional capital injections or refinancing.

4. Monitoring Points:

• Track improvements in net current assets and reduction in current liabilities to assess liquidity recovery.
• Monitor any changes in fixed asset valuations or disposals that may impact collateral value.
• Watch for signs of equity injection or debt restructuring to stabilize the balance sheet.
• Observe operating cash flows and profitability trends in future accounts to evaluate business viability.
• Review director and shareholder activities for strategic plans addressing financial deficits.