FRED AND JOSH LIMITED

Executive Summary

FRED AND JOSH LIMITED currently presents a high-risk profile due to a significant deterioration in financial position with net liabilities and negative working capital. While the company remains compliant with filing requirements and operational since 2020, its solvency and liquidity challenges warrant careful investigation. Further due diligence on financial performance and debt obligations is advised before considering investment.

FRED AND JOSH LIMITED - Analysis Report

Company Number: 12602064

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

1. Risk Rating: HIGH
   Justification: The company exhibits net liabilities of £9,420 as of the latest financial year end, a significant deterioration from positive net assets in previous years. Current liabilities exceed current assets, resulting in negative net current assets (-£646), indicating potential short-term liquidity issues. The presence of bank loans amounting to £8,774 classified as long-term creditors also raises solvency concerns.

2. Key Concerns:

• Negative shareholders' funds and net liabilities indicate the company is insolvent on a balance sheet basis as of the latest accounts.
• Very limited cash availability (£4) versus current liabilities (£650) suggests potential liquidity constraints to meet immediate obligations.
• Deterioration from prior years’ positive net assets and working capital to negative figures in the latest year may signal operational or financial distress.

3. Positive Indicators:

• The company is current with its statutory filings, with no overdue accounts or confirmation statements, indicating compliance with regulatory requirements.
• The business has been operational since 2020 and maintains an appointed director with a stable occupancy.
• The company benefits from exemption from audit, reducing administrative burden and costs.

4. Due Diligence Notes:

• Investigate the reasons for the sharp decline in net assets from £481 in 2023 to negative £9,420 in 2024, including any extraordinary expenses, write-offs, or losses.
• Review cash flow statements and management accounts to assess ongoing liquidity and operational cash generation capacity.
• Confirm terms and repayment schedules of the bank loans (£8,774) and any potential cross-default or covenant risks.
• Assess whether the company has any contingent liabilities or off-balance sheet obligations not reflected in the accounts.
• Enquire about ongoing business activities given the SIC codes include cleaning, taxi operations, and miscellaneous services, to understand revenue sources and sustainability.