Company Number: 13454646

Analysis Date: 2025-07-20 18:14 UTC

Financial Health Assessment Report for FRASERTECH LONDON LTD

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1. Financial Health Score: B

Explanation: FRASERTECH LONDON LTD demonstrates signs of improving financial health, moving from a fragile position in 2021-2023 to a stronger net asset position in 2024. The company maintains positive net current assets and shareholders’ funds, showing a recovery and growth trajectory. However, the absolute scale remains modest, reflecting its micro-entity status and limited operational scope. The score "B" reflects a generally healthy financial condition with room for strengthening, particularly in building liquidity buffers and growing retained earnings.

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2. Key Vital Signs

Metric	2021 (£)	2022 (£)	2023 (£)	2024 (£)	Interpretation
Current Assets	9,954	11,977	11,977	32,980	Healthy increase in liquid assets
Current Liabilities	9,472	11,633	11,633	20,099	Liabilities growing but manageable
Net Current Assets	482	344	344	12,881	Dramatic improvement in working capital
Shareholders' Funds	482	344	344	12,881	Equity base strengthened substantially
Average Employees	1	1	1	1	Stable, very small workforce

• Net Current Assets (Working Capital): The company’s working capital was marginal in the first three years, indicating limited short-term liquidity. The jump to £12,881 in 2024 is a strong positive sign, suggesting improved cash flow and ability to meet short-term obligations comfortably.
• Shareholders’ Funds: The equity has grown significantly in 2024, indicating retained earnings or capital injections. This reflects growing financial resilience.
• Current Liabilities: While liabilities have increased in absolute terms, they are well covered by current assets in 2024.

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3. Diagnosis: Financial Health and Business Condition

The financial "vital signs" suggest that FRASERTECH LONDON LTD was in a state of borderline liquidity and limited net worth during its initial years (2021-2023), which is common for a micro-entity startup phase. The symptoms—minimal net current assets and shareholders’ funds—point to a business that was managing tightly, possibly relying on owner funding or credit.

However, the 2024 accounts reveal a marked improvement: a healthy buildup of current assets and a solid equity base. This "healthy cash flow" symptom suggests improved operational performance or capital injections, enabling the company to strengthen its balance sheet and reduce financial stress. The consistent single-employee count indicates a lean operation likely focused on consultancy activities, consistent with its SIC code (70229 - Management consultancy).

Overall, the company exhibits a positive trajectory toward financial stability and sustainability, with no overt signs of distress or insolvency risk. The lack of audit requirements and its micro-entity status imply simpler accounting structures, but the directors appear to be fulfilling statutory responsibilities appropriately.

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4. Recommendations for Financial Wellness Improvement

• Maintain and Grow Liquidity: Continue to build working capital reserves to safeguard against unexpected expenses or downturns. Consider maintaining a cash buffer equivalent to at least 3 months of operating costs.

• Enhance Profit Retention: Reinvest profits into the company to build retained earnings and strengthen shareholders’ funds further.

• Expense Management: With liabilities increasing, closely monitor short-term obligations and negotiate favorable payment terms with suppliers to optimize cash flow.

• Diversify Revenue Streams: As a consultancy, explore expanding client base or service offerings to reduce dependence on a narrow set of contracts, improving revenue stability.

• Formal Financial Planning: Implement budgeting and forecasting processes to anticipate financial needs, identify potential liquidity shortfalls early, and plan growth initiatives prudently.

• Compliance and Governance: Continue to file accounts and confirmation statements timely to avoid penalties and maintain good standing with regulatory bodies.

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