Company Number: 13480719

Analysis Date: 2025-07-19 12:53 UTC

1. Credit Opinion: DECLINE
   FREELY WELLNESS LTD shows significant and persistent negative net assets over the last three years, indicating an insolvent position. The company reported net liabilities of £42,062 as of 30 June 2024, worsening slightly from prior years. There are no fixed or current assets reported to offset these liabilities, suggesting a lack of tangible collateral or liquidity to service debt obligations. This financial weakness raises serious concerns on the company’s ability to meet repayment commitments or honor commercial agreements without additional capital infusion or restructuring.

2. Financial Strength:
   The balance sheet reflects a micro-entity with no fixed or current assets and increasing current liabilities totaling approximately £42k. The company’s net assets have been negative since 2022 and deteriorated from £9,529 positive net assets at incorporation in 2021 to a negative position thereafter. Shareholders’ funds are negative, indicating accumulated losses or unrecovered expenses that have eroded equity. The absence of assets and negative equity position signals poor financial resilience and vulnerability to external shocks.

3. Cash Flow Assessment:
   No current assets, including cash or receivables, are reported, which implies very limited liquidity. The current liabilities exceed any short-term assets, resulting in a working capital deficit. This suggests liquidity constraints and potential difficulties in meeting short-term obligations. The reported average of 4 employees also indicates ongoing operational costs, which may exacerbate cash flow pressures if revenues are insufficient or irregular.

4. Monitoring Points:

• Monitor any changes in asset holdings or capital injections to improve liquidity and net asset position.
• Track cash flow statements and profit & loss accounts to assess operational cash generation trends.
• Review director conduct and any related party transactions due to the involvement of multiple directors as significant controllers.
• Watch for any overdue filings, changes in company status, or signs of insolvency procedures.
• Evaluate customer payment patterns and supplier credit terms as indicators of operational stability.