FRAZER COOGANS HOLDINGS LTD

Executive Summary

FRAZER COOGANS HOLDINGS LTD displays a stable short-term financial position with strong working capital but has a very thin equity base and significant long-term liabilities typical of a newly formed holding company. The company's financial health is cautiously positive, with prudent debt management and equity strengthening recommended to improve resilience. Close monitoring and strategic financial planning will be key to sustaining growth and financial wellness.

FRAZER COOGANS HOLDINGS LTD - Analysis Report

Company Number: SC814700

Analysis Date: 2025-07-19 12:20 UTC

Financial Health Assessment for FRAZER COOGANS HOLDINGS LTD

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1. Financial Health Score: C

Explanation:
This score reflects a cautious but stable financial position typical of a newly formed company holding investments in a subsidiary. The balance sheet shows solid net current assets but minimal net equity. The company is in its infancy with limited trading history, so while there are no immediate red flags, the thin equity base and significant long-term liabilities require prudent management to ensure healthy financial growth.

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2. Key Vital Signs

Metric	Value (£)	Interpretation
Current Assets	901,794	Healthy level of short-term resources to cover immediate needs.
Cash at Bank	54,528	Adequate liquidity but relatively low compared to total assets.
Current Liabilities	141,117	Manageable short-term debts; can be covered by current assets.
Net Current Assets (Working Capital)	760,677	Strong positive working capital, indicating good short-term financial health.
Creditors Due After One Year	754,964	Substantial long-term debt, requires monitoring of debt servicing ability.
Net Assets (Equity)	5,713	Very low net equity indicating the company is largely financed by liabilities.
Share Capital	1	Minimal share capital, typical for a new holding company.
Investment in Subsidiary	847,266	Main asset; represents investment in Frazer Coogans Limited, underlying business.

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3. Diagnosis: Financial Condition Overview

• Healthy Cash Flow Indicators: The company shows a strong positive net current assets position (£760,677), suggesting it has sufficient current resources to meet short-term obligations — akin to having a healthy pulse indicating ongoing operational viability.

• Symptoms of Financial Leverage: The company carries significant long-term liabilities (£754,964), almost equal to its current assets. This is a symptom of financial leverage, typical for holding companies investing in subsidiaries, but it introduces risk if income streams do not support debt servicing.

• Thin Equity Base: The net equity of just £5,713 shows the company is primarily debt-financed. This thin capital cushion can be a symptom of infancy and initial setup rather than distress but calls for careful balance sheet management.

• Early Stage Business: Incorporated recently (June 2024), the company’s financials reflect a startup phase with no profit and loss account included, consistent with a holding company structure. It holds an investment in its operating subsidiary, Frazer Coogans Limited, which likely drives underlying operational revenues and risks.

• Governance and Control: The company is controlled by Mrs Carly Brodie (75-100% ownership), with three directors appointed at incorporation, indicating clear governance but concentrated control, which requires transparency and strong oversight to mitigate related risks.

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4. Recommendations: Steps to Improve Financial Wellness

1. Enhance Equity Base: Consider injecting additional equity capital or retaining profits in the holding structure to build a stronger net asset buffer. This improves solvency and reduces reliance on debt.

2. Monitor and Manage Debt: Establish clear plans for servicing long-term liabilities. Explore opportunities to refinance at more favorable terms or gradually reduce debt to improve financial stability.

3. Improve Cash Reserves: While current liquidity is adequate, increasing cash reserves provides a safety net for unforeseen operational expenses or investment opportunities.

4. Regular Financial Review: Given the early stage and financial leverage, frequent financial health checks and cash flow forecasting are crucial to detect stress symptoms early.

5. Transparent Reporting and Compliance: Maintain timely and accurate filings per Companies House requirements, ensuring all stakeholders have clear visibility into company financials and governance.

6. Strategic Integration with Subsidiary: As a holding company, ensure close alignment with Frazer Coogans Limited’s operational performance, as the holding’s financial health depends on the subsidiary’s success.

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