FREEDOM TO PLAY LTD

Executive Summary

Freedom To Play Ltd is a micro-entity showing declining financial strength with shrinking assets and equity. Its current liquidity position is modest but weakening, and the absence of employees raises questions about operational scale and revenue generation. Given these factors, credit risk is elevated, and approval for credit facilities is not recommended at this time without significant mitigating information.

FREEDOM TO PLAY LTD - Analysis Report

Company Number: 14062015

Analysis Date: 2025-07-29 20:59 UTC

1. Credit Opinion: DECLINE
   Freedom To Play Ltd is a micro-entity with a very limited financial footprint and no recorded employees. The company shows a significant decline in net assets, from £2,194 in 2023 to £963 in 2024, reflecting a shrinking balance sheet and possible operational contraction. The fixed assets and current assets have both approximately halved year-on-year, while current liabilities have decreased but not proportionally, resulting in a reduction in net current assets from £1,428 to £580. The company’s inability to demonstrate growth or stable financial footing, combined with minimal operational scale (zero employees reported), suggests limited capacity to service new or existing credit obligations. Additionally, the director and sole shareholder controls 100% of voting rights, indicating concentrated control but no diversification of management which could be a risk factor.

2. Financial Strength: Weakening
   The balance sheet shows a decrease in total assets less current liabilities from £2,194 to £963, evidencing a notable contraction. Fixed assets are minimal (£383), and current assets stand at only £1,300 with current liabilities at £720. While net current assets remain positive, the declining trend implies reduced buffer to cover short-term obligations. Shareholders’ funds have likewise decreased, indicating retention of earnings or capital injections is not occurring. The company’s micro status and lack of employees point to a very small scale operation with limited financial strength and resilience.

3. Cash Flow Assessment: Limited Liquidity
   Current assets primarily consist of cash or near-cash assets totaling £1,300, providing modest liquidity. Current liabilities of £720 are covered by current assets, but the margin has narrowed significantly compared to the prior year. The small cash buffer and declining net current assets raise concerns about the company’s ability to manage working capital efficiently or absorb unexpected expenses. Absence of employees implies minimal payroll obligations but also possibly limited revenue-generating activity.

4. Monitoring Points:

• Continued decline in net assets and net current assets
• Cash flow sufficiency to cover liabilities as the business scales or contracts
• Operational activity and revenue generation given zero employees reported
• Director’s strategy for business growth or turnaround
• Timely filing of accounts and confirmation statements to ensure compliance