Company Number: 14114280

Analysis Date: 2025-07-29 16:15 UTC

1. Credit Opinion: CONDITIONAL APPROVAL
   Freedom Bathrooms & Mobility Ltd is a very recently incorporated micro-entity (established in 2022) operating in retail (SIC 47190). The company’s net assets have deteriorated significantly from £13,458 in 2023 to £158 in 2024, primarily due to an increase in current liabilities exceeding current assets, resulting in negative working capital. This weak liquidity position raises concerns about short-term debt servicing ability. However, no overdue filings or director disqualifications are noted, and the sole director has a clear ownership and control structure. Credit can be extended but should be conditional on close monitoring of liquidity improvements and cash flow management with possible covenant restrictions.

2. Financial Strength:
   The balance sheet shows a sharp decline in net assets and working capital over the last financial year. The company’s fixed assets have decreased slightly (£10,647 to £7,985), while current liabilities have increased substantially (£23,597 to £31,872), leading to net current liabilities of £5,554. Long-term liabilities are minimal (£838). Overall net assets at £158 are marginal, indicating very limited equity buffer. The shrinkage in shareholder funds suggests either operational losses or increased short-term borrowing. The company remains solvent but financially fragile.

3. Cash Flow Assessment:
   Current liabilities exceeding current assets indicate potential liquidity stress. Negative net current assets imply the company may struggle to meet short-term obligations without additional financing or improved cash inflows. The absence of a profit and loss account limits insight into operational cash generation, but the significant rise in creditors hints at reliance on trade credit or delayed payments. Operational cash flow and working capital management are critical risk factors.

4. Monitoring Points:

• Track quarterly cash flow and working capital trends to ensure current liabilities do not further outstrip current assets.
• Review any upcoming lease commitments (£72k future minimum payments) and their impact on cash requirements.
• Monitor the director’s capital injections or external funding events to shore up the equity base.
• Watch for improvements in profitability as reflected in future filed accounts and any change in trade creditor balances.
• Confirm timely filing of annual returns and accounts, maintaining compliance.