FRESH START LIVING HOME IMPLEMENTATION LTD

Executive Summary

Fresh Start Living Home Implementation Ltd is a recently incorporated micro-entity exhibiting a modest net liability position at its latest accounts, with a material director loan outstanding. While it remains compliant with filing obligations and retains positive working capital, the erosion of equity and reliance on director funding suggest moderate solvency and liquidity risks. Further due diligence on cash flows and director financing arrangements is recommended to better understand financial stability and operational sustainability.

FRESH START LIVING HOME IMPLEMENTATION LTD - Analysis Report

Company Number: 13909753

Analysis Date: 2025-07-20 17:19 UTC

1. Risk Rating: MEDIUM
   While the company is currently active and compliant with filing deadlines, the latest accounts show a decline in net assets resulting in a small net liability position. The director's loan account balance is also negative and unchanged from prior year, indicating possible reliance on director funding with no repayments during the most recent year. These factors suggest moderate solvency and liquidity pressures.

2. Key Concerns:

• Net assets have fallen from £4,506 in 2023 to a net liability of £162 in 2024, indicating erosion of equity and potential solvency risk.
• Director’s loan account shows an outstanding balance of £9,064 with no repayments in the latest year, which may imply ongoing cash flow reliance on director advances.
• Limited financial history is available due to the company's recent incorporation in 2022 and micro-entity filing status, restricting comprehensive assessment of operational performance and sustainability.

3. Positive Indicators:

• The company is up to date with both accounts and confirmation statement filings, demonstrating regulatory compliance and management discipline.
• Current liabilities have decreased slightly, and the company maintains positive net current assets (£438) despite reduced working capital.
• The business operates in specialized design and building finishing activities, sectors which can be niche and potentially profitable if well managed.

4. Due Diligence Notes:

• Investigate the nature and terms of the director’s loan account, including any plans for repayment or restructuring to understand liquidity implications.
• Review operational cash flows and profitability trends beyond balance sheet snapshots to assess business sustainability and growth prospects.
• Confirm whether the negative net asset position is a temporary fluctuation or indicative of deeper financial distress, including any contingent liabilities or off-balance sheet exposures.
• Consider obtaining management accounts or interim financials for more current insight given the limited publicly available history.